CarTrade Cancels Acquisition Deal With Amit Jain’s CarDekho as the company officially calls off its proposed acquisition of Girnar Software, parent of CarDekho and BikeDekho. The decision, announced in a stock exchange filing on November 27, 2025, comes after preliminary talks disclosed earlier this month. Both sides reportedly “mutually decided not to proceed with the proposed transaction at this stage.”
Had the deal gone through, it could have become one of the largest consolidations in India’s auto‑tech sector potentially valued at over $1.2 billion, and significantly reshaping the competitive landscape for companies including Cars24 and Spinny.
In its announcement, CarTrade said it remains focused on growing its existing brands: CarWale, BikeWale, OLX India and Shriram Automall. The company reassured stakeholders about the strong fundamentals and long-term growth potential in its current portfolio.
This update comes at a time when CarTrade is seeing healthy financial momentum: in Q2 FY26, the company registered a significant increase in both revenue and profit.
1. Background: Who Are CarTrade and CarDekho
1.1 CarTrade Tech: Origin and Business Model
CarTrade Tech began as an online automobile classifieds platform and has grown into a full-fledged automotive ecosystem. It facilitates buying and selling new and used vehicles across India, expanding its services over time to include auctions, financing, inspections, and digital marketplaces.
Today its brands and services include: CarWale, BikeWale, CarTrade core platform, Shriram Automall (a physical auction network), CarTrade Exchange, Adroit Auto (vehicle inspection), and OLX India (general classifieds).
Its business model combines online classifieds, vehicle remarketing and auctions, B2B financing and remarketing, and vehicle inspection and certification. This gives it a broad presence across the automotive value chain. In 2023, CarTrade acquired the classified and auto transaction business of OLX India for ₹535.54 crores.
1.2 CarDekho / Girnar Software: History and Services
CarDekho Group, under Girnar Software, was founded by Amit Jain and Anurag Jain. The company operates consumer‑facing platforms including CarDekho and BikeDekho, offering vehicle listings (new and used), reviews, and related services.
Beyond classifieds, CarDekho diversified into services such as insurance (via InsuranceDekho), auto‑financing (via Rupyy), and digital retail. It also operates other verticals like Gaadi.com, Zigwheels, and international operations in countries such as Indonesia and UAE. The company had posted consolidated operating revenue of over ₹2,000 crore in FY24.
Around 2023, CarDekho shut down its used‑car retail operations, citing high costs related to real estate, staffing, and inventory. The group then restructured operations and refocused on higher-margin verticals such as insurance, financing and OEM advertising.
2. What Was the Proposed Deal : and Why It Mattered
2.1 Deal Scope and Expectations
In early November 2025, CarTrade disclosed that it was in preliminary discussions with Girnar Software to potentially consolidate their automotive classifieds businesses specifically, CarDekho and BikeDekho. Media reports placed the potential valuation of CarDekho’s classifieds business around $1.2 billion, hinting at a high‑stakes all‑stock acquisition.
Had the transaction succeeded, it would have merged CarTrade’s strength in B2B remarketing, auctions and financing with CarDekho’s deep penetration in consumer‑facing listings, insurance, and digital retail. Analysts said the union could have created a dominant end‑to‑end auto‑tech marketplace, a major consolidation in India’s auto classifieds and mobility start‑up ecosystem.
Industry observers noted that such a merger might have reshaped competition with other leading players, including digital used‑car platforms like Cars24, Spinny, and classifieds‑cum‑auto‑retail platforms like Droom.
2.2 Strategic Rationale
For CarTrade, acquiring CarDekho could have fast‑tracked its growth on the consumer side. It would combine its B2B auction and remarketing infrastructure with a strong B2C user base, creating a full‑stack auto‑marketplace.
For CarDekho / Girnar Software, the deal would offer access to a robust dealer ecosystem, remarketing infrastructure, and B2B financing capabilities potentially making their business more asset‑light and scalable.
Given that CarDekho had already exited capital‑intensive retail, the merger could let the combined entity leverage complementary strengths and reduce duplication.
The proposed consolidation reflected a broader trend of consolidation and maturation in India’s auto‑tech market, where players increasingly focus on asset‑light models, financing, insurance, and digital platforms rather than heavy showroom inventories.
3. What Happened : Why the Deal Was Called Off
3.1 The Decision to Walk Away
On November 27, 2025, CarTrade filed an exchange notification stating that both CarTrade and Girnar Software had “mutually decided not to proceed with the proposed transaction at this stage.” The deal is effectively off, at least for now. CarTrade did not disclose detailed reasons for the decision. The filing simply said the transaction would not be pursued “for now.”
It is possible that due diligence, valuation disagreements, future business strategies, or regulatory/market conditions influenced the decision. However, no public statement clarified these factors.
3.2 Market Reaction and Aftermath
The market responded swiftly. The shares of CarTrade Tech fell about 5 per cent on the announcement, reflecting disappointment among investors who had anticipated a transformational merger. Some reports show the share price dropped as much as 5.4 per cent intra‑day.
Still, the company reassured stakeholders of its continued commitment to its existing platforms and long‑term growth potential.
4. The Current State of CarTrade and CarDekho
4.1 CarTrade’s Strength: Portfolio and Recent Performance
CarTrade today operates a diversified automotive marketplace ecosystem. Its portfolio includes CarWale, BikeWale, Shriram Automall, OLX India, CarTradeExchange, Adroit Auto, and the core CarTrade marketplace.
The 2023 acquisition of OLX India’s classifieds and auto business had expanded CarTrade’s reach. That acquisition roughly added 68 million average monthly unique visitors, and made the combined group more competitive in used vehicle transactions and auctions.
In its latest quarter (Q2 FY26), CarTrade posted a 29 % year-on-year rise in revenue to ₹222.14 crore, and a 109 % jump in net profit (PAT) to ₹64.08 crore. EBITDA grew 94 % to ₹63.60 crore.
CarTrade also noted that its existing platforms continue to serve a large and expanding total addressable market (TAM), giving it ample runway for organic growth.
4.2 CarDekho / Girnar Software After the Deal Collapse
CarDekho, through Girnar Software, had already restructured significantly. Following a costly retail venture, it shut down its used‑car retail operations in 2023. The company then pivoted to higher-margin, asset‑light verticals: insurance (InsuranceDekho), auto financing, OEM advertising, and digital listings.
In FY24, Girnar Software posted roughly ₹2,393 crore in operating revenue, while trimming losses by over 40 per cent (to around ₹340 crore). After the failed merger, analysts and some media have suggested that CarDekho may still pursue other strategic moves including a possible IPO in the medium term.
5. What the Cancellation Means for the Auto‑Tech Industry
5.1 Consolidation Pause : but Not Off the Table
The collapse of this proposed consolidation marks a pause in the trend toward large mergers in the Indian auto‑tech space. A deal combining consumer classifieds, auctions, remarketing, financing, and insurance would have set a strong precedent. With it off, similar large-scale M&A may take longer or face more scrutiny.
But given how both companies emphasised their strong fundamentals and openness to strategic opportunities, the idea of consolidation is unlikely to disappear altogether. Other combinations perhaps involving different players may emerge.
5.2 Competitive Dynamics Remain Fragmented
Without the merger, competition among major players such as Cars24, Spinny, Droom continues. Each retains room to grow independently. In many ways, this maintains a fragmented but competitive marketplace.
This fragmentation may benefit smaller or niche players. It may also encourage innovation particularly in segments like insurance, financing, and digital retail as companies seek differentiation.
5.3 Strengthening of Asset‑Light, Tech‑Driven Models
The cancellation underlines a larger trend: both CarTrade and CarDekho seem committed to asset-light, technology-driven business models rather than heavy physical inventory.
For investors and entrepreneurs, the message is that building strong tech platforms, remarketing networks, financing and value‑added services may hold more promise than capital‑intensive retail models.
6. Learning for Startups and Entrepreneurs
The collapse of the high-profile CarTrade–CarDekho deal offers several lessons for founders and emerging startups.
First, strategic consolidation may seem attractive, but due diligence, valuation alignment and business‑model fit remain critical. A “unicorn-to‑unicorn” merger can stumble if core assumptions don’t align. Second, having multiple business verticals listings, remarketing, financing, services adds resilience. Asset‑light operations and strong fundamentals matter more than sheer scale.
Third, flexibility and a diversified portfolio help weather market uncertainties. Even after the deal fell through, CarTrade remains profitable and committed to growth. Finally, industry dynamics can shift rapidly. Entrepreneurs should remain agile, think long‑term, and build businesses focused on sustainable value rather than short‑term consolidation wins.
About FoundLanes
At foundlanes.com, we track the evolving narrative of India’s startup ecosystem. The collapse of this proposed merger underlines how even large, well‑funded sectors like auto‑tech can face structural and strategic roadblocks.
Yet, the continued growth and resilience of firms like CarTrade Tech backed by smart acquisitions and sound strategy highlight the opportunities that remain. Emerging startups in adjacent domains auto financing, vehicle inspections, digital insurance, auto‑tech marketplaces, remarketing and auctions should take note of this shift toward asset‑light, tech‑centric models.
As we move into 2026, we expect more stories where nimble startups leverage technology, data, and smart partnerships — rather than sheer capital to carve out value in India’s fast‑growing auto ecosystem.