CarTrade might acquire CarDekho and BikeDekho soon
What's the story
CarTrade Technologies has confirmed its negotiations with Girnar Software for the acquisition of automotive platforms CarDekho and BikeDekho. The company announced this in an exchange filing today. The potential deal, which is in advanced stages, is seen as a strategic move to consolidate the new and used automotive classifieds businesses in India.
Clarification
CarTrade clarifies scope of discussions
CarTrade clarified that the ongoing discussions are strictly limited to the automotive classifieds business of CarDekho and BikeDekho. They do not include financing, insurance, or other non-automotive businesses of these companies. The company further emphasized that no binding or definitive agreement has been signed yet regarding this transaction.
Strategic moves
Ongoing talks part of regular business operations
CarTrade also said that the talks with Girnar Software are a part of its regular business operations. The company is continuously looking for strategic opportunities, including possible investments and acquisitions, as part of its growth strategy. This confirmation comes after CNBC-TV18 reported that the deal is in advanced stages and could be structured as a cash-and-stock transaction.
Financial details
Valuation should exceed previous funding round's valuation
While the final details of the deal are still being worked out, it is expected that the valuation will surpass CarDekho's last reported $1.2 billion from its 2021 Series E funding round. At that time, the company had achieved unicorn status.