CarTrade to acquire CarDekho for $1.2B
What's the story
In a major consolidation move in India's online automobile marketplace, CarTrade Tech is set to acquire CarDekho (Girnar Software Pvt. Ltd.). The deal is at an advanced stage and is likely to be a cash-and-stock transaction, according to CNBC-TV18. The valuation of the deal is expected to exceed CarDekho's last reported valuation of $1.2 billion from its 2021 Series E funding round when it became a unicorn.
Financials
CarTrade Tech's strong financial performance
The proposed transaction comes at a time when CarTrade Tech is on a strong financial footing. The company reported a stellar Q2 FY26, with revenue growing 29% YoY to ₹222.14 crore. Profit after tax jumped 109% to ₹64.08 crore while EBITDA grew by an impressive 94%, resulting in an EBITDA margin of 33%. Despite the topline surge, total costs increased only by 8%.
User engagement
Impressive growth across platform network
CarTrade's platform network, which includes CarWale, BikeWale, OLX India and a growing remarketing business, crossed 85 million average monthly unique users in the quarter. Each vertical witnessed double-digit growth with consumer-group businesses witnessing a whopping 37% revenue jump and an 82% profit surge. OLX India posted record performance with revenue up by 17% and profit skyrocketing by an impressive 213%.
Growth strategy
CarDekho's financial position and international expansion
CarDekho, on the other hand, has been strengthening its financial position and expanding internationally. Its parent company, Girnar Software Pvt. Ltd., reported ₹2,644 crore in operating income for FY25 and turned profitable at both EBITDA and PAT levels in FY24. The group witnessed a whopping 54% revenue jump in FY24 with plans to achieve around 50% growth in FY25 fueled by strong performance in used cars, auto financing, and its Southeast Asia business.
Industry implications
Potential impact of the merger on India's auto-tech ecosystem
If finalized, the merger would combine CarTrade's strengths in dealer auctions, vehicle financing and B2B remarketing with CarDekho's scale in consumer listings, insurance and digital retail. Experts believe this integration could redefine India's auto-tech ecosystem by providing an end-to-end digital experience from vehicle discovery to financing, insurance and resale. The deal would be one of the biggest M&A transactions in India's digital auto space.