CarTrade Tech Consolidation Update

CarTrade Tech has formally discontinued its proposed merger with Girnar Software, which is the parent company of CarDekho and BikeDekho. In a filing made to the stock exchange on November 27, CarTrade mentioned that both entities have mutually opted not to proceed with the transaction at this time.

Initial Discussions on Merger

CarTrade initially revealed on November 11 that it was engaged in preliminary discussions with CarDekho regarding a potential merger within the automotive classifieds sector in India. According to an earlier report from Startup Superb, these discussions included a prospective all-stock acquisition of CarDekho, which could have positioned it as one of India’s leading auto-tech platforms.

Valuation and Investor Backing

Media sources indicated that this potential agreement might value CarDekho’s automotive classifieds operations at approximately $1.2 billion. CarDekho, which is supported by investors such as Peak XV Partners, CapitalG, and LeapFrog, last received funding in late 2021 with a valuation set at $1.2 billion.

CarTrade’s Market Position

On the other hand, CarTrade went public in 2021 and has made notable acquisitions, including OLX India and Shriram Automall, to enhance its network in both the offline and online auto marketplace segments. Following the breakdown of the talks, CarTrade confirmed that it will maintain its focus on reinforcing its existing operations, which include platforms like CarWale, BikeWale, OLX India, and Shriram Automall.

Future Opportunities

CarTrade stated that its platforms function within a large and growing market, suggesting ample scope for development. Additionally, the company expressed its willingness to explore strategic opportunities as part of its regular business activities.