CarTrade drops $1.2-billion CarDekho deal after months of negotiations

New Delhi: CarTrade Tech has confirmed that discussions to acquire CarDekho, a deal valued at more than $1.2 billion, have been discontinued after both companies decided not to move forward.

In a regulatory filing on November 27, CarTrade stated that the two sides had “mutually decided not to proceed with the proposed transaction at this stage”, bringing to a close months of negotiations around what would have been one of the biggest consolidation exercises in India’s auto-tech sector.

The filing referred back to CarTrade’s earlier disclosure from November 11, which noted preliminary discussions with Girnar Software, the parent company of CarDekho and BikeDekho, on a potential merger of their automotive classifieds operations in India.

CarTrade said it would now continue focusing on strengthening its existing portfolio, which includes CarWale, BikeWale, OLX India and Shriram Automall. The company added that these businesses operate in sizeable and growing markets and still offer substantial scope for expansion. 
It also noted that it will maintain its strategic roadmap centred on product development, technology upgrades and wider ecosystem value, while assessing future opportunities in the ordinary course of business.

The now-abandoned transaction had brought considerable attention across the mobility and technology sectors. The combination would have integrated CarTrade’s dealer-oriented strengths in auctions, remarketing and financing with CarDekho’s consumer-facing operations, spanning listings, insurance and digital retail.

Talks had progressed into advanced stages, with both companies reportedly completing due diligence before negotiations broke down, according to the news report. The deal, if completed, was expected to shift competitive dynamics for other online auto platforms such as Cars24, Spinny and Droom.

For CarTrade, the merger would have broadened its reach among retail buyers, while CarDekho would have gained deeper links to dealer networks and B2B channels. The collapse of discussions marks a significant pause in consolidation trends in the sector.

CarDekho became a unicorn in 2021 following a $250-million pre-IPO funding round, but has since undergone substantial restructuring. The company exited its used-car retail division in 2023 after prolonged losses driven by high operational costs. Its parent, Girnar Software, reported FY24 operating revenue of Rs 2,393 crore, with losses narrowing to Rs 340 crore after the exit.

The group has since leaned toward higher-margin verticals, particularly InsuranceDekho, which recorded nearly eightfold growth in FY24, as well as transaction-driven businesses involving auto finance, OEM partnerships and dealer integrations, according to the news report.