CarTrade and CarDekho mutually call off acquisition talks

CarTrade Tech has officially called off its proposed consolidation with Girnar Software, the parent company of CarDekho and BikeDekho.

In a stock exchange filing dated November 27, the company said both parties have “mutually decided not to proceed with the proposed transaction at this stage.”

CarTrade had first disclosed on November 11 that it was in preliminary talks with CarDekho for a potential consolidation in the automotive classifieds space in India.

According to Entrackr’s earlier report, the discussions included a potential all-stock acquisition of CarDekho, which could have created one of India’s largest auto-tech platforms. Media reports suggested that the potential deal could value CarDekho’s automotive classifieds business at around $1.2 billion.

CarDekho, backed by investors such as Peak XV Partners, CapitalG and LeapFrog, last raised capital in late 2021 at a valuation of $1.2 billion. CarTrade, on the other hand, went public in 2021 and has since acquired OLX India and Shriram Automall to expand its offline and online auto marketplace network.

With the collapse of talks, CarTrade said it will continue to focus on strengthening its existing businesses including CarWale, BikeWale, OLX India and Shriram Automall. The company added that its platforms operate in a large and expanding market and offer significant headroom for growth.

CarTrade also said it remains open to evaluating strategic opportunities in the ordinary course of business.