CarTrade’s $1.2-billion CarDekho acquisition talks come unstuck

CarTrade’s over-$1.2-billion CarDekho acquisition talks come unstuck

CarTrade Tech has announced that its proposed acquisition of CarDekho — a transaction estimated at over $1.2 billion — will not move forward after both sides agreed to call off talks.

In an exchange filing on November 27, CarTrade said the two companies had “mutually decided not to proceed with the proposed transaction at this stage”. The disclosure ends months of talks around what would have been one of India’s largest consolidation moves in the auto-tech space.

What did CarTrade say in its filing?

“This is further to our earlier intimation dated November 11, 2025, wherein CarTrade Tech Limited (‘the Company’) had informed the Stock Exchanges that it was in preliminary discussions with Girnar Software Private Limited regarding a potential consolidation opportunity in the automotive classifieds businesses (CarDekho and BikeDekho) in India,” the company said.

“We wish to inform you that the parties have mutually decided not to proceed with the proposed transaction at this stage. Accordingly, the transaction is not being pursued for now.”

The company said its immediate focus would remain on scaling its existing properties — CarWale, BikeWale, OLX India and Shriram Automall.

CarTrade said it believes its current businesses have strong fundamentals, operate in large and expanding markets, and continue to offer significant headroom for growth.

The company would stay focused on its strategic roadmap, including product and technology investments, while strengthening value across its broader ecosystem. The firm also said it will keep evaluating strategic opportunities in the normal course of business.

What was the proposed deal?

The proposed transaction had drawn significant attention in the auto-tech and mobility sectors.

The combination would have brought together CarTrade’s strength in dealer auctions, remarketing, and B2B financing with CarDekho’s scale in consumer listings, insurance and digital retail.

Talks had moved into advanced stages, with both companies completing due diligence before the discussions ultimately stalled, as Moneycontrol reported earlier.

The move was expected to reshape competition for online auto players such as Cars24, Spinny and Droom, especially as platforms increasingly seek profitability and differentiated business models.

For CarTrade, the acquisition would have expanded its consumer-facing presence. For CarDekho, it would have deepened reach across dealer networks and B2B channels. The collapse of discussions marks a notable shift in consolidation prospects within the sector.

How has CarDekho’s business evolved in recent years?

CarDekho, which became a unicorn in October 2021 after its $250 million pre-IPO funding round, has undergone a major business reset over the past two years.

The company exited its used-car retail business in 2023 after sustained losses and high cash burn driven by parking, showroom and manpower costs.

Its parent, Girnar Software, reported Rs 2,393 crore in operating revenue for FY24, with losses narrowing by over 40 percent to Rs 340 crore following the exit.

The group has since leaned heavily on higher-margin verticals, including its insurance arm InsuranceDekho, which grew nearly eightfold in FY24, and its transaction-led business comprising auto finance, OEM advertising and dealer integrations.