Auto marketplace CarTrade Tech has ended discussions with Girnar Software to acquire CarDekho and BikeDekho, its automotive classified businesses.
“We wish to inform you that the parties have mutually decided not to proceed with the proposed transaction at this stage. Accordingly, the transaction is not being pursued for now,” CarTrade said in an exchange filing on Thursday.
“The company continues to remain fully focused on strengthening its existing portfolio of businesses across its platforms (CarWale, BikeWale, OLX India, and Shriram Automall). We believe that our current businesses have strong fundamentals, operate in [a] large and expanding total addressable market (TAM), and provide significant headroom for growth,” it added.
On November 11, CarTrade Tech had announced it was in talks with Girnar Software to acquire its automotive classifieds business. Apart from CarDekho and BikeDekho, the major names in the segment include SoftBank-backed Cars24 and Tiger Global-backed Spinny.
A deal would have brought together two of the most prominent names in the business. CarDekho, backed by Peak XV, Hillhouse and Google Capital, attained unicorn status in 2021 after a $250 million funding round valued it at Rs 10,643 crore ($1.2 billion). CarTrade currently has a market capitalisation of Rs 14,859 crore (around $1.66 billion), according to stock exchange data.
In March, ET had reported that used-car sales platform Spinny had closed a Rs 1,120 crore ($131 million) funding round led by US-based Accel Leaders Fund at a flat valuation of around $1.7-1.8 billion.
Jaipur-based CarDekho Group was founded in 2007 by Amit Jain and Anurag Jain. The company’s business spans vehicle classifieds, insurtech, and fintech. Apart from CarDekho and BikeDekho, its subsidiaries include InsuranceDekho and Rupyy.
CarTrade Tech posted robust financials for the second quarter. The company’s Q2 profit more than doubled year on year, driven by strong revenue growth and stronger margins. Net profit jumped 2.9 times YoY to Rs 64.1 crore in the July–September quarter from Rs 30.7 crore a year earlier. Meanwhile, revenue from operations for the period surged by a quarter to Rs 193.4 crore from Rs 154.2 crore a year earlier.
OLX India, acquired by CarTrade in 2023, also delivered steady gains, with revenue growing 17% year on year, while profit after tax surged three times. OLX “continues its quarter-on-quarter growth trajectory, achieving a 30% Ebitda margin in Q2 FY26”, CarTrade said.
As of 10:15 a.m, CarTrade shares were trading 2% lower at Rs 3,108.80 each on the BSE, compared with a 0.38% rise in the Sensex.
