CarTrade Tech is in advanced talks to acquire rival CarDekho in a deal potentially valued at over $1.2 billion. The proposed transaction, structured as a cash-and-stock deal, aims to consolidate India's rapidly growing digital automobile marketplace. An official announcement is expected soon as both companies move through final negotiations.^[1][2] This potential merger would be one of India's largest M&A transactions in the auto-tech sector.^[1][2] ### Major Consolidation in Auto-Tech The discussions between CarTrade Tech and Girnar Software Pvt. Ltd., CarDekho's parent company, focus specifically on CarDekho and BikeDekho's automotive classifieds businesses. The deal excludes Girnar's other verticals, such as financing and insurance.^[3][4][5][6] CarTrade Tech stated in an exchange filing on November 11 that it regularly evaluates strategic opportunities, including investments and acquisitions, as part of its growth strategy.^[3][4][5][6] The company confirmed being in discussions with Girnar Software for a potential consolidation opportunity.^[4][5] Sources familiar with the matter told CNBC-TV18 that due diligence is complete, and both parties are negotiating the final terms.^[1][7] The valuation is expected to exceed $1.2 billion, the amount at which CarDekho achieved unicorn status during its 2021 Series E funding round.^[1][2][3] This acquisition would combine CarTrade's strengths in dealer auctions, financing, and business-to-business (B2B) remarketing with CarDekho's leadership in consumer listings, insurance, and digital retail.^[1][2][8] ### Strong Financial Footing for Merger The potential merger comes as CarTrade Tech shows strong financial momentum. For the second quarter of fiscal year 2026 (Q2 FY26), the company reported a 29 percent year-on-year rise in revenue, reaching ₹222.14 crore. P^[1][2][3][8]rofit after tax surged by 109 percent to ₹64.08 crore. Car^[1][2][8]Trade's EBITDA climbed 94 percent to ₹63.6 crore, resulting in a robust EBITDA margin of 33 percent. Despi^[1][2]te significant revenue growth, total costs increased by only 8 percent. CarT^[1][2]rade's network, which includes platforms like CarWale, BikeWale, OLX India, and its remarketing business, attracted 85 million average monthly unique users during the quarter. Each ^[1][2][3]vertical saw double-digit growth, with consumer-facing businesses experiencing a 37 percent rise in revenue and an 82 percent jump in profit. OLX I^[1][2]ndia specifically set a new record with a 17 percent increase in revenue and a 213 percent increase in profit. The r^[2]emarketing division also saw a 23 percent increase in revenue and a 30 percent profit rise. CarTr^[2]ade has a strong cash balance of over ₹1,080 crore and no debt, providing ample resources for strategic acquisitions. CarDek^[2]ho's parent firm, Girnar Software Pvt. Ltd., also reported robust financial performance. It had an operating income of ₹2,644 crore for fiscal year 2025 (FY25). The compa^[1][2][8]ny has remained profitable at both the EBITDA and PAT (Profit After Tax) levels since FY24. CarDekho ^[1][8]has also been consolidating its operations and expanding internationally. ### Resh^[1][2]aping India's Auto-Tech Landscape If finalized, the CarTrade-CarDekho merger would create a dominant player in India's digital automotive ecosystem. Industry ^[2][9]observers believe the integration could enable an end-to-end digital experience covering vehicle search, finance, insurance, and resale. This woul^[2]d redefine India's auto-tech ecosystem, combining the strengths of two established players. The comb^[2][4]ined entity would gain wider market reach and stronger brand recognition, along with technological and operational synergies. This move^[9] would also increase competitive pressure on other operators in the Indian market, such as Cars24, Spinny, and Droom, which have been aggressively expanding in used cars and financing. CarTrade ^[2][4][7]Tech previously acquired OLX India's auto and classified business in August 2023 for approximately ₹535.5 crore. Following t^[3]hat acquisition, CarTrade stated its combined audience would reach roughly 68 million unique monthly users. CarTrade's^[3] shares reacted positively to the news, jumping more than 5 percent in early trading hours on November 11. The stock c^[4][5]losed at ₹2,970.00, up 2.60 percent, inching closer to its all-time high of ₹3,180.00. This reflects i^[9]nvestor optimism about the potential benefits of the merger for CarTrade's long-term growth and market share. While discussio^[9]ns are ongoing, the market is closely watching for an official binding agreement that could significantly shift India's online automotive classifieds sector.