CarTrade denies reports that it has bought CarDekho
The stock exchange filing was posted after reports said that the auto-tech company has been in discussions with Girnar Software for a potential acquisition.
Online automobile marketplace CarTrade on Tuesday confirmed that the firm has been in discussions with Girnar Software regarding a potential consolidation opportunity but noted that no binding or definitive agreements have been executed yet.
Girnar Software, which is the parent company of used automotive classifieds businesses, CarDekho and BikeDekho.
In a stock exchange filing, CarTrade added that it continually evaluates various strategic opportunities, which include potential investments and acquisitions as part of its growth strategy.
The company clarified that these discussions are limited to the automotive classifieds business and do not include financing, insurance, or other non-automotive businesses of the company.
CNBC TV18 on Monday reported that CarTrade is in advanced discussions to acquire CarDekho in what is expected to be a cash-and-stock deal. According to the report, while the final details of the deal are still being negotiated, the valuation is likely to exceed CarDekho’s last reported valuation of $1.2 billion from its 2021 Series E funding round.
The acquisition reports come a few weeks after CarTrade Tech reported a 109% year-on-year rise in profit after tax for the three months ended September 30. The company reported a profit after tax of Rs 64.08 crore and also recorded its highest-ever quarterly revenue of Rs 222.14 crore.
Meanwhile, CarDekho reported a Rs 2,392.8 crore in revenue in FY24 compared to Rs 2,408.4 crore in the year-ago period. The growth was driven by its insurtech arm, InsuranceDekho and fintech platform, Ruppy.
The company also managed to narrow its losses to Rs 340.1 crore compared to Rs 566.1 crore in the year-ago period, according to Tracxn.
Edited by Affirunisa Kankudti