CarTrade to Acquire CarDekho in $1.2 Billion Deal, Creating India’s Largest Auto-Tech Platform

According to various media reports, CarTrade Tech is planning to buy CarDekho (Girnar Software Pvt. Ltd.) in a significant consolidation move in India's online car industry. The sale is in early stages and is anticipated to be structured as a cash-and-stock transaction, according to a report by CNBC-TV18. The valuation is probably going to be higher than CarDekho's most recent stated $1.2 billion from its 2021 Series E investment round, when the company became a unicorn, even though the specifics are still being worked out. Discussions about the final terms and due diligence are still in progress, and an official announcement is anticipated in the days ahead.

CarTrade’s Strong Financial Performance

The planned deal comes at a time when CarTrade Tech is experiencing significant financial growth. The business had a remarkable second quarter (Q2 FY26), with revenue of INR 222.14 crore, up 29% year over year. EBITDA increased 94% to INR 63.60 crore, resulting in a 33% EBITDA margin, while profit after tax increased 109% to INR 64.08 crore. The topline increased significantly, but overall costs increased by just 8%.

Throughout the quarter, CarTrade's platform network, which consists of CarWale, BikeWale, OLX India, and a developing remarketing company, surpassed 85 million average monthly unique users. Every sector had double-digit growth; the consumer-group companies saw an 82% increase in profit and a 37% increase in revenue. With revenue up 17% and profit up 213%, OLX India set a new record. Meanwhile, the remarketing division saw a 23% increase in revenue and a 30% profit. With a cash balance of over INR 1,080 crore and no debt, the company has plenty of runway for strategic acquisitions.

This Merger Will Redefine India’s Auto-Tech Ecosystem

If the purchase goes through, CarTrade's dominance in dealer auctions, auto financing, and business-to-business remarketing will be combined with CarDekho's size in consumer listings, insurance, and online shopping.

An end-to-end digital experience covering vehicle search, finance, insurance, and resale might be made possible by the integration, according to industry observers, potentially redefining India's auto-tech ecosystem. If completed, the CarTrade–CarDekho deal would be one of the biggest M&A transactions in India's digital auto market, changing the competitive landscape for companies like Cars24, Spinny, and others while establishing a domestic auto-tech giant with the financial clout and online presence to lead the mobility ecosystem's next stage of expansion.

In the meantime, CarDekho has been strengthening its financial position and growing its global footprint. Girnar Software Pvt. Ltd., its parent business, recorded operational income of INR 2,644 crore for FY25 and achieved profitability in FY24 at both the EBITDA and PAT levels.