Shares of CarTrade Tech jumped over 5% in early trading on November 11 after the company confirmed it is in discussions to potentially acquire rival CarDekho, trading at Rs 3,146 per share initially.

Moneycontrol had reported that the deal, valued at over $1.2 billion, could be one of the largest transactions in India’s digital auto space. The proposed acquisition is expected to be structured as a cash-and-equity deal, with due diligence underway and final terms under negotiation.

If completed, the merger would combine India’s two leading digital auto platforms, reshaping competition for players like Cars24, Spinny, and Droom, which are expanding in used cars and financing.

In an official exchange filing, CarTrade Tech stated that it evaluates strategic opportunities, including acquisitions, as part of its growth strategy. The discussions with Girnar Software (CarDekho/BikeDekho) are limited to automotive classifieds businesses and do not involve financing, insurance, or other non-automotive operations. The company noted that no binding agreement has been signed yet and will make disclosures if a deal is executed.

Following the confirmation, CarTrade Tech shares initially surged but later erased gains and fell nearly 3% to Rs 2,896 as of 10:06 am.

This potential acquisition marks a significant development in India’s auto-tech sector, highlighting consolidation trends in online car and bike marketplaces.