CarDekho IPO Chases ₹3,500 Crore at 50% Higher Value

CarDekho parent Girnar Software plans to file draft IPO papers with the Securities and Exchange Board of India this quarter, targeting an issue size of ₹3,000–3,500 crore, people familiar with the matter told Inc42.

The IPO will include a fresh issue of roughly 10% of the total. The rest will be offered through a sale by existing shareholders. The company targets a valuation of ₹13,000–15,000 crore, up from the ₹9,000 crore it was valued at in its last equity raise about five years ago.

“CarDekho is well capitalised with a considerable war chest and positive operating cash flow. It doesn’t need much primary capital at this point,” one of the people said, explaining the small fresh issue.

Bankers on the deal include Axis Bank, IIFL, Goldman Sachs and Nomura, the people said. The draft red herring prospectus is likely to be filed through the confidential route, though that decision has not been finalised.

Valuation Jump and Financial Traction

CarDekho reported consolidated operating revenue of ₹2,795 crore for the fiscal year ended March 2025, a 24% increase from the prior year. Its consolidated net loss narrowed to ₹266 crore from ₹276 crore. For the current fiscal year, the people expect revenue to grow 15% and EBITDA to rise 20–25%, implying margin expansion as the company moves closer to profitability.

The company has raised roughly $750 million to date. Investors include Peak XV Partners, Hillhouse Capital, CapitalG, LeapFrog Investments, Times Internet, and HDFC Bank. Many of these large shareholders are likely to offload part of their stakes through the offer for sale.

Competitive Positioning and the InsuranceDekho Split

The IPO will include CarDekho's auto classifieds and loan disbursal businesses, with mobility operations also folded in. InsuranceDekho will be held as an associate investment and pursue a separate listing after its merger with RenewBuy closes. That merger is expected within three to four quarters. The merged entity was itself looking to raise ₹3,000–4,000 crore from an IPO by March 2027.

CarDekho competes with listed auto classifieds platform CarTrade and IPO-bound Cars24. Merger talks between CarDekho and CarTrade collapsed late last year. CarTrade had been looking to spend about $1.2 billion to acquire CarDekho and BikeDekho.

CarDekho first floated IPO plans in 2024, targeting a $300 million raise by 2025. It deferred those plans to focus on profitability first. The current timeline suggests the company now sees the window open.

The DRHP filing is expected in the July–September quarter. The confidential filing path, if used, would keep financial details private until a later stage.