Exclusive | CarTrade to buy CarDekho, eyes $1.2 billion-plus deal in one of India’s biggest auto-tech deals

In a major consolidation move in India’s online automobile marketplace, CarTrade Tech is set to acquire CarDekho (Girnar Software Pvt. Ltd.), according to multiple people familiar with the matter.

Sources told CNBC-TV18 that the deal is in advanced stages and is expected to be structured as a cash-and-stock transaction. While the final contours are still being negotiated, the valuation is likely to exceed CarDekho’s last reported $1.2 billion from its 2021 Series E funding round, when the company achieved unicorn status.

Due diligence and final-term discussions are currently underway, with an official announcement expected in the coming days. CarTrade has not yet responded to CNBC-TV18’s queries, while CarDekho has declined to comment on the development.

The timing of the proposed transaction coincides with a period of strong financial momentum for CarTrade Tech. The company reported a standout second quarter (Q2 FY26), with revenue rising 29% year-on-year to ₹222.14 crore. Profit after tax surged 109% to ₹64.08 crore, while EBITDA climbed 94% to ₹63.60 crore, resulting in an EBITDA margin of 33%. Despite the sharp expansion in the topline, total costs grew by only 8%.

CarTrade’s platform network — which includes CarWale, BikeWale, OLX India, and a growing remarketing business — crossed 85 million average monthly unique users during the quarter. Each vertical posted double-digit growth, with the consumer-group businesses recording a 37% rise in revenue and an 82% increase in profit.

OLX India delivered record performance, with revenue up 17% and profit jumping 213%, while the remarketing business grew revenue 23% and profit 30%. The company remains debt-free, with a cash balance of about ₹1,080 crore, providing substantial headroom for strategic acquisitions.

CarDekho, meanwhile, has been consolidating its financial footing and expanding its international presence. Its parent company, Girnar Software Pvt. Ltd., reported ₹2,644 crore in operating income for FY25 and turned profitable at both the EBITDA and PAT levels in FY24.

The group posted 54% revenue growth in FY24 and was targeting around 50% growth in FY25, driven by strong performance in used cars, auto financing, and its Southeast Asia business, which recently raised $60 million from Navis Capital Partners and Dragon Fund. The company’s FY25 financials are not yet publicly available.

If completed, the merger would combine CarTrade’s leadership in dealer auctions, vehicle financing and B2B remarketing with CarDekho’s scale in consumer listings, insurance and digital retail. Industry observers say the integration could redefine India’s auto-tech ecosystem, enabling an end-to-end digital experience spanning vehicle discovery, financing, insurance and resale.

If finalised, the CarTrade–CarDekho transaction would rank among the largest M&A deals in India’s digital auto segment, reshaping competition for players such as Cars24, Spinny and others, while creating a home-grown auto-tech powerhouse with the financial muscle and digital reach to dominate the next phase of growth in the mobility ecosystem.Read about our editorial guidelines and ethics policy