In a surprising twist that is now reverberating through India’s auto-tech sector, CarTrade has officially withdrawn from its proposed acquisition of CarDekho (parent company: Girnar Software), ending what had looked like a blockbuster consolidation in the used-and-new car classifieds space.
What unfolded CarTrade
According to a regulatory filing shared on November 27, 2025, both CarTrade and Girnar Software “mutually decided not to proceed with the proposed transaction at this stage.” Inc42 Media+1
The planned deal had been evaluated at over US $1.2 billion, combining CarDekho’s vast listings and consumer reach with CarTrade’s auction and remarketing infrastructure. Inc42 Media+2Moneycontrol+2
CarTrade did not disclose a specific reason for backing off. Instead, it reiterated its commitment to strengthen its existing platforms — including CarWale, BikeWale, OLX India and Shriram Automall — and emphasised the long-term potential of its current business verticals.
Why this could be wise
Despite the allure of creating a market behemoth, the decision not to merge may actually be pragmatic:
- Business model clarity: CarDekho has already exited its loss-making used-car retail arm in 2023, pivoting toward new-car sales and higher-margin services like insurance and financing. Moneycontrol+2Wikipedia+2
- Focus on proven assets: CarTrade’s existing platforms — especially those dealing with B2B auctions, remarketing, and classifieds — still operate in a large and expanding total addressable market. By doubling down on these, the company avoids the risks and integration complexities of a mega-merger. Inc42 Media+2Moneycontrol
- Valuation and capital discipline: A $1.2 billion acquisition would have been capital intensive and potentially diluted focus. Steering clear now preserves financial flexibility for strategic investments.
What this means for the auto-tech sector
The collapse of this deal signals that consolidation in India’s auto-tech ecosystem may slow down — at least for now. For players like Cars24, Spinny and Droom, the heat of a direct combined competitor is off.
For CarTrade, the decision points to a preference for building depth rather than breadth. And for CarDekho / Girnar Software, it underscores the challenges faced by auto-tech firms trying to balance scale, profitability, and changing consumer patterns in India’s evolving automotive market.
Even though the mega-deal is off the table, this episode might reflect prudence rather than missed opportunity. By choosing to refine and expand core assets rather than chasing a headline merger, CarTrade may actually be setting itself up for steadier growth — a smart play for the long haul.