Listed auto classifieds platform CarTrade has decided to not proceed with the proposed acquisition of Girnar Software Private Limited, the parent entity of CarDekho.
"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,” CarTrade said in an exchange filing.
CarTrade did not mention the reason behind not going ahead with the acquisition. Instead, it said that the company will remain focussed on strengthening its existing portfolio of businesses across its platforms, which includes 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 added.
Earlier this month, reports surfaced that CarTrade was in advanced talks with CarDekho for a possible acquisition deal valued at over $1.2 Bn. A CNBC TV18 report also claimed that the due diligence was done and both sides were negotiating final terms. The deal was supposed to be a cash-and-equity transaction.
Later, CarTrade confirmed to the exchanges that it was exploring a potential acquisition of CarDekho’s new and used automotive classifieds businesses.
Amit Jain-led CarDekho entered the unicorn club in October 2021 after raising $250 Mn at a $1.2 Bn valuation. But later shut its used-car retail business in 2023 due to its capital intensive nature. Instead, it diverted its focus to the new car business and its fintech verticals.
Founded in 2009 by Vinay Sanghi, CarTrade initially started as a B2B and C2B auction platform. Banks, fleets, and dealerships relied on CarTrade's auctions and verification services, paying commissions for each transaction. However, it pivoted to used car classifieds in 2012 with the launch of CarTrade.com and CarTradeExchange.com.
Over the past decade, CarTrade made six acquisitions - the parent company of CarWale and BikeWale, Adroit Auto, Shriram Automall, Auego Asset Management, Four Wheeler Group and OLX Autos.
With the acquisition of CarDekho, CarTrade was looking to expand its new car segment. For context, CarDekho recorded 1.1 Bn annual sessions, attracted 60 Mn monthly users, and generated 24 Mn saleable new car leads in FY24.
Shares of CarTrade were trading 4.35% lower at INR 3034.30 on the BSE at 11:45 IST.