CarDekho To File DRHP For ₹3,500 Cr IPO This Quarter

Auto classifieds startup CarDekho’s parent Girnar Software is looking to file the draft papers with SEBI for an IPO of up to ₹3,000-3,500 Cr in the ongoing July-September quarter, sources told Inc42.

The IPO will comprise both fresh issue as well as an offer for sale, with the size of the fresh issue expected to be around 10% of the total issue size, the sources added.

The unicorn is eyeing a valuation of ₹13,000-15,000 Cr for the IPO, higher than the ₹9,000 Cr it was valued at during its last equity fund raise around five years ago.

The development was first reported by ET. CarDekho didn’t respond to Inc42’s queries on its IPO plans and financial performance.

The company has already picked bankers for the IPO, including Axis Bank, IIFL, Goldman Sachs and Nomura, the sources said. The DRHP is likely to be filed through the confidential route, however, it isn’t final yet.

Many of CarDekho’s large shareholders are likely to offload part of their stakes via the OFS. The startup, which entered the unicorn club in 2021, counts the likes of Peak XV Partners, Hillhouse Capital, Google’s investment arm CapitalG, LeapFrog Investments, Times Internet, and HDFC Bank among its backers.

“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 sources said, explaining the reason behind the smaller fresh issue size compared to the OFS.

Founded in 2008 by Amit Jain and Anurag Jain, the CarDekho Group operates companies across auto classifieds, including CarDekho, BikeDekho, ZigWheels and Powerdrift; edtech platform CollegeDekho, fintech firm Rupyy; shared mobility businesses Revv and Carrum; InsuranceDekho, among others. It has raised a total funding of about $750 Mn to date.

The startup competes in the auto classifieds space with listed player CarTrade and IPO-bound Cars24. Notably, CarTrade was in acquisition talks with CarDekho until late last year. However, the two parties pulled the plug on the deal in November. CarTrade was looking to spend around $1.2 Bn to acquire its competitors CarDekho and BikeDekho.

CarDekho’s IPO is likely to include its auto classifieds, loan disbursal and mobility businesses. Meanwhile, Insurance Dekho will continue to be held as an associate investment and pursue a separate listing after its merger with RenewBuy is completed. The merger is expected to close over the next three to four quarters, the sources cited above said.

Notably, the merged entity was said to be looking to raise ₹3,000-4,000 Cr from an IPO by March 2027.

CarDekho first floated IPO plans in 2024 to raise $300 Mn by the next year. However, it deferred the public listing plans with an eye on achieving profitability first.

CarDekho group reported a 24% YoY increase in its consolidated operating revenue to ₹2,795 Cr in FY25, while its consolidated net loss narrowed marginally to ₹266 Cr from ₹276 Cr in FY24.

While the startup is yet to file its audited FY26 numbers, the sources said it expects to post a 15% YoY growth in revenue. Its EBITDA is seen rising 20-25% during the year.

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