Mumbai: CarTrade Tech Ltd, the company behind auto tech platforms like CarWale, BikeWale and OLX India, is all set to acquire rival CarDekho in a deal worth $1.2 billion, based on wide-ranging reports.
If the deal goes through, this transaction would help CarTrade become the largest company in India’s digital auto space, and help it re-enter the used car business that it exited in 2023. The company is aiming to use this acquisition as a launchpad for its second innings, given that the company has a dominant position in the classifieds business and attained unicorn status.
The deal has been structured with both cash and stock components, and the merger could reshape competition in the space, where rivals like Cars26, Droom and Spinny have been aggressively expanding and financing.
There are also reports of CarDekho’s subsidiaries, BikeDekho and InsuranceDekho, being a part of the deal, but nothing is confirmed yet.
An opportunity for domination
After the deal is signed, CarTrade would be in a better position to expand its operations, bring scale, efficiency and pricing power to the highly competitive used car market, which is all set to grow at 8-10% this year. In fact, a report by Crisil Ratings suggests that used car sales is likely to surpass 6 million units this year, with improved access to financing, affordable rates and growing digital platforms helping buyers get a better deal. In fact, the market for used cars is expected to reach $73 billion by 2028, even as the used-to-new car sales ratio rises to 1.4 from 1 less than five years ago.
For CarTrade, this could be a landmark moment, especially since the company has been profitable lately, with a ₹64 cr net profit for Q2 FY26, a rise of 109% from the same period last year. The company is currently debt-free, and has almost ₹1,080 cr in cash, giving it enough room to finance this acquisition.
CarTrade could also leverage CarDekho’s consumer-facing presence in listings, insurance and digital retail to complement its strengths in dealer auctions, remarketing and vehicle finance. The result will be an end-to-end digital auto ecosystem, and help it become the dominant force in the market.
All of this depends on how CarTrade integrates the strengths of both companies and deals with the competition in the space. Unlike other hype-based startups, CarTrade has the numbers to prove, and this could be the start of a game-changer for the company.
