CarTrade-CarDekho Billion-Dollar Deal Collapses After Months of Acquisition Talks

After months of talks, CarTrade and CarDekho acquisition deal has finally been scrapped. The company, in an exchange filing, said that its planned takeover of CarDekho --- a deal that was expected to cross $1.2 billion --- will not move forward as both sides agreed to call off talks.

The two companies had “mutually decided not to proceed with the proposed transaction at this stage”, said CarTrade Tech on November 27. The decision has ended the months of talks around the possible CarDekho acquisition, which would have been one of India’s largest consolidation moves in the auto-tech space.

“This is further to our earlier intimation dated November 11, 2025, wherein CarTrade Tech Limited (‘the Company’) had informed the Stock Exchanges that it was in preliminary discussions with Girnar Software Private Limited regarding a potential consolidation opportunity in the automotive classifieds businesses (CarDekho and BikeDekho) in India,” the filing read.

“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,” it added.

While the company has not disclosed the reason behind the call-off, it stated that CarTrade will remain focused on scaling its existing properties, including 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”.

The company said it will continue to pursue its strategic roadmap, prioritising product and technology investments and deepening value across its wider ecosystem. It added that it will keep assessing potential strategic options as part of its regular business approach.

CarTrade-CarDekho Deal

The planned deal had become a major talking point across the auto-tech and mobility sectors. The merger would have paired CarTrade’s capabilities in dealer auctions, vehicle remarketing, and B2B financing with CarDekho’s large footprint in consumer listings, insurance services, and online retailing.

The company was in advanced talks with CarDekho a possible acquisition deal valued at over $1.2 billion. Both companies were completing due diligence before the discussions ultimately scrapped. The move would have reshaped the competition for online auto players such as Cars24, Spinny, and Droom.

For CarTrade, the deal would have significantly strengthened its position on the consumer side of the market, while CarDekho would have gained wider access to dealer ecosystems and B2B flows. With talks now shelved, expectations of a major consolidation move in the auto-tech space have taken a clear pause.

CarDekho became a unicorn in October 2021 after raising $250 million funds in the pre-IPO round. Since then, it has undergone a major business reset over the past two years. The company shut down its used-car retail operations in 2023 after persistent losses and steep operating expenses linked to real estate, staffing and inventory management.

Its parent firm, Girnar Software, posted ₹2,393 crore in operating revenue in FY24, while trimming its losses to ₹340 crore,  a reduction of more than 40% , helped by stepping away from the capital-intensive retail model.

Since then, the group has shifted focus to more profitable lines of business, especially InsuranceDekho, which saw nearly eightfold growth in FY24, along with its transaction-driven portfolio spanning auto financing, OEM-led promotions and dealer-focused integrations.