CarTrade Drops CarDekho Acquisition Bid, Citing Changing Priorities

The listed vehicle classifieds site CarTrade has made the decision not to move forward with its plan to acquire CarDekho's parent company, Girnar Software Private Limited. In an exchange filing, CarTrade stated that it would like to notify the exchange that the parties have agreed to not move forward with the proposed transaction at this time.

As a result, the transaction is not currently being pursued. The reason CarTrade decided against moving forward with the deal was not disclosed. Rather, it stated that the company will continue to concentrate on bolstering its current business portfolio across its platforms, which includes Shriram Automall, OLX India, CarWale, and BikeWale. The company went on to say that it thinks its present companies have solid fundamentals, operate in a sizable and growing Total Addressable Market (TAM), and offer substantial development potential.

Earlier Speculations

According to reports earlier this month, CarTrade and CarDekho were in advanced negotiations for a potential takeover agreement worth more than $1.2 billion. According to a CNBC TV18 report, both parties were negotiating final conditions, and the due diligence was completed.

The purchase was intended to be made in cash and equity. Subsequently, CarTrade informed the exchanges that it was considering purchasing CarDekho's new and used car classifieds services. In October 2021, CarDekho, managed by Amit Jain, became a unicorn after raising $250 million at a valuation of $1.2 billion. However, because it required a lot of resources, it later closed its used automobile retail operation in 2023. Rather, it shifted its attention to the financial verticals and the new automobile business.

CarTrade Acquisitions

The parent business of CarWale and BikeWale, Adroit Auto, Shriram Automall, Auego Asset Management, Four Wheeler Group, and OLX Autos are the six companies that CarTrade has acquired in the last ten years. With the acquisition of CarDekho, CarTrade aimed to broaden its presence in the new car market segment. For comparison, in FY24, CarDekho generated 24 million saleable new car leads, drew 60 million monthly users, and recorded 1.1 billion yearly sessions.

CarTrade began as a B2B and C2B auction platform when Vinay Sanghi founded it in 2009. CarTrade's auctions and verification services were depended upon by banks, fleets, and dealerships, who paid commissions on each transaction. However, with the introduction of CarTrade.com and CarTradeExchange.com in 2012, it changed its focus to used automobile classifieds.