If the talks culminate in a deal, it will mark the coming together of two of the most prominent names in the business. CarDekho, backed by Peak XV, Hillhouse and Google Capital, attained unicorn status in 2021 after a $250 million funding round valued it at $1.2 billion. CarTrade, a listed company, has a market capitalisation of Rs 13,917 crore (around $1.57 billion).
In its exchange filing, CarTrade said it is exploring a “potential consolidation opportunity in the new and used automotive classifieds businesses (CarDekho and BikeDekho) in India”.
“These discussions are limited to the automotive classifieds businesses and do not include financing, insurance, or other non-automotive businesses of theirs. At this stage, there is no binding or definitive agreement…,” the filing added.
The talks are taking place in the wake of CarTrade Tech posting robust financials for the second quarter. The company’s Q2 profit more than doubled in annual terms, driven by robust revenue growth and stronger margins.
CarTrade Tech’s consolidated net profit jumped 109% year-on-year (YoY) to Rs 64.1 crore in the July–September quarter from Rs 30.7 crore a year earlier. Meanwhile, revenue from operations for the period surged 25% to Rs 193.4 crore from Rs 154.2 crore a year earlier.
Total expenses rose 5.3% on year to Rs 142.2 crore during the quarter under review, indicating cost efficiencies even as the company expanded its business.
CarTrade Tech said its Consumer Group division remained the main driver of growth, with revenue rising 37% year-on-year and profit after tax up 82%. The company added that the unit achieved a 40% Ebitda margin in the quarter.
OLX India, acquired by CarTrade in 2023, also delivered steady gains, with revenue growing 17% year-on-year, while profit after tax surged 213%. OLX “continues its quarter-on-quarter growth trajectory, achieving a 30% Ebitda margin in Q2 FY26”, CarTrade said.
CarTrade shares were trading down 2.37% on the NSE at Rs 2,911 per share as of 11:18 am.