CarTrade and CarDekho mutually end acquisition discussions

CarTrade Tech and Girnar Software, the parent company of CarDekho and BikeDekho, have formally ended discussions on a potential consolidation, shutting down one of the most closely watched deal conversations in India’s auto-tech sector.

In a regulatory filing on 27 November, CarTrade confirmed that both companies had “mutually decided not to proceed with the proposed transaction at this stage,” bringing an abrupt halt to negotiations first disclosed earlier this month, as reported by Entrackr.

CarTrade had announced on 11 November that it was in early-stage discussions with CarDekho regarding a possible consolidation. As per Entrackr’s previous reporting, the talks included the prospect of an all-stock acquisition of CarDekho — a deal that, if completed, would have created one of the country’s largest integrated automotive marketplaces. Media reports indicated that CarDekho’s automotive classifieds arm was being valued at around $1.2 billion during the negotiation phase.

CarDekho, backed by CapitalG, Peak XV Partners and LeapFrog, last raised funding in late 2021 at a valuation of $1.2 billion. CarTrade, which went public the same year, has made a series of acquisitions including OLX India and Shriram Automall to broaden its footprint across digital and physical auto marketplaces.

With the discussions now shelved, CarTrade said it will continue doubling down on its existing portfolio, which includes CarWale, BikeWale, OLX India and Shriram Automall. The company noted that these platforms operate in a large and expanding market with substantial potential for future growth.

CarTrade added that while the talks with CarDekho have been called off, it remains open to exploring strategic opportunities in the normal course of business.