In a landmark development for India’s digital mobility ecosystem, CarTrade Technologies is in advanced discussions to acquire rival CarDekho (Girnar Software) in a cash-and-stock transaction valued at USD 1.2 billion (~INR 10,644 crore). If finalized, the acquisition would mark one of the largest mergers in India’s auto-tech space, potentially reshaping competition and creating a dominant end-to-end automotive marketplace spanning discovery, financing, insurance, and resale.
CarTrade’s Strategic Position And Financial Strength
The timing of this potential acquisition aligns with CarTrade’s robust financial momentum. In Q2 FY26, CarTrade reported a 29% year-on-year increase in revenue to INR 222.14 crore, while profit after tax surged 109% to INR 64.08 crore. Its EBITDA rose 94% to INR 63.60 crore, resulting in a healthy EBITDA margin of 33% — a rare feat among Indian digital platforms.
Despite sharp revenue growth, CarTrade managed to keep total costs under control, up only 8% year-on-year. The company remains debt-free, maintaining a cash balance of around INR 1,080 crore, offering significant headroom for acquisitions such as this.
CarTrade operates an expansive network of platforms — CarWale, BikeWale, OLX India, and a remarketing business — which together attract over 8.5 crore monthly unique users. Each business vertical recorded double-digit growth, with consumer-group operations delivering a 37% increase in revenue and an 82% rise in profit. OLX India, in particular, delivered a record 213% profit growth, further strengthening CarTrade’s position in both consumer and enterprise segments.
CarDekho’s Growth Story And Strategic Realignment
CarDekho, founded under Girnar Software, reached unicorn status in October 2021 after raising USD 250 million (~INR 2,217 crore) at a USD 1.2 billion (~INR 10,644 crore) valuation. Since then, the Jaipur-based firm has undergone a significant transformation. After shutting down its used-car retail vertical in 2023 due to high operational costs, the company has refocused on high-margin businesses, including auto financing, insurance, and international expansion.
For FY24, Girnar Software reported INR 2,393 crore in operating revenue, reducing losses by over 40% to INR 340 crore. By FY25, the group’s revenue climbed to INR 2,644 crore, turning profitable at both EBITDA and PAT levels. CarDekho’s insurance arm, InsuranceDekho, contributed significantly, with revenue soaring nearly eightfold to INR 743 crore. The group also secured USD 60 million (~INR 532 crore) in fresh capital for its Southeast Asia expansion from Navis Capital Partners and Dragon Fund.
Scope Of The Deal: Focused On Automotive Classifieds
In an official exchange filing on 11 November 2025, CarTrade confirmed ongoing discussions with Girnar Software. The company clarified that talks are limited to the automotive classifieds businesses — namely CarDekho and BikeDekho — and exclude financing, insurance, or other non-automotive verticals.
CarTrade emphasized that no binding or definitive agreement has been signed yet and that such discussions are part of its ordinary strategic evaluation process. The company noted it regularly explores investment and acquisition opportunities in line with its growth vision.
Following the confirmation, CarTrade’s stock surged 2.6%, closing at INR 2,970, near its all-time high of INR 3,180, reflecting investor optimism over the potential consolidation.
Strategic Synergies And Industry Impact
If the merger proceeds, the combined entity will bring together complementary strengths across the automotive value chain.
- CarTrade’s core expertise in dealer auctions, B2B remarketing, and vehicle financing
- CarDekho’s consumer reach in vehicle listings, insurance, and digital retail
Together, they could create India’s largest integrated auto-tech platform, serving both B2B and B2C segments with unmatched scale and profitability. Industry experts believe this integration could redefine India’s mobility landscape, enabling a seamless, full-stack digital experience — from vehicle search and financing to insurance and resale.
The proposed deal also signals a broader trend in India’s startup ecosystem, where profitability and scale are now driving consolidation over aggressive expansion. Once finalized, this transaction will rank among the largest M&A deals in India’s mobility and digital auto sectors, standing alongside major consolidations in e-commerce and fintech.
What Lies Ahead
The coming weeks are expected to bring official confirmation and deal specifics, including transaction structure and shareholding details. With both companies demonstrating financial resilience and operational maturity, the merger appears strategically aligned to unlock long-term value for investors, consumers, and industry stakeholders alike.
Should the acquisition close, CarTrade–CarDekho will not only dominate the Indian auto classifieds market but also set the stage for the next phase of digital mobility evolution — one driven by integration, innovation, and intelligent capital allocation.
In summary, CarTrade’s potential acquisition of CarDekho, valued at INR 10,644 crore, represents a defining moment in India’s auto-tech industry. It embodies the sector’s shift from fragmented competition toward strategic consolidation — building a stronger, more sustainable ecosystem ready for the next decade of growth.
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