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

New Delhi, India Jul 9, 2026 ALN: Auto classifieds startup CarDekho’s parent company, Girnar Software, is preparing to file the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at up to ₹3,500 crore in the ongoing July-September quarter, sources have reported. This move marks a significant milestone for CarDekho as it seeks to transition from a privately held startup to a publicly traded company, a common trajectory for successful tech firms as they look to access capital markets for growth and expansion.

The IPO will consist of both a fresh issue and an offer for sale (OFS), with the fresh issue expected to account for approximately 10% of the total issue size. This strategic approach indicates that CarDekho aims to capitalize on favorable market conditions while allowing existing shareholders to liquidate part of their stakes. The combination of fresh capital and shareholder liquidity is a common strategy among companies looking to balance their financial needs while providing an exit opportunity for early investors.

CarDekho is targeting a valuation between ₹13,000 crore and ₹15,000 crore for the IPO, which represents a significant increase from its last valuation of ₹9,000 crore during its previous equity fundraising round approximately five years ago. This increase in valuation reflects the company’s growth trajectory and the expanding market for online auto classifieds in India, which has seen increased consumer adoption and a shift towards digital platforms.

The company has engaged several prominent bankers for the IPO, including Axis Bank, IIFL, Goldman Sachs, and Nomura. These financial institutions play a crucial role in managing the IPO process, including pricing, marketing, and ensuring regulatory compliance. Although the DRHP is anticipated to be filed through a confidential route, this has not been finalized yet, which indicates that the company is still in the process of determining the best approach for its public offering.

Many of CarDekho’s major shareholders are expected to offload portions of their stakes through the OFS. The startup, which achieved unicorn status in 2021, counts notable investors such as Peak XV Partners, Hillhouse Capital, Google’s investment arm CapitalG, LeapFrog Investments, Times Internet, and HDFC Bank among its backers. The involvement of such high-profile investors not only provides credibility to CarDekho but also reflects the confidence in its business model and future growth prospects.

According to sources, "CarDekho is well capitalized with a considerable war chest and positive operating cash flow. It doesn’t need much primary capital at this point," which explains the relatively smaller size of the fresh issue compared to the OFS. This financial stability allows CarDekho to focus on strategic initiatives to enhance its market position rather than solely relying on the IPO for funding.

Founded in 2008 by Amit Jain and Anurag Jain, the CarDekho Group operates a variety of businesses in the auto classifieds sector, including CarDekho, BikeDekho, ZigWheels, and Powerdrift, as well as an edtech platform, CollegeDekho, a fintech firm, Rupyy, and shared mobility businesses, Revv and Carrum. The group has raised a total of approximately $750 million to date, demonstrating its ability to attract investment over the years and diversify its business operations beyond just auto classifieds.

In the competitive landscape of auto classifieds, CarDekho faces rivals such as the publicly listed CarTrade and IPO-bound Cars24. Notably, CarTrade was in acquisition discussions with CarDekho until late last year, but the deal was ultimately abandoned in November, with CarTrade reportedly looking to spend around $1.2 billion to acquire its competitors. This competitive environment underscores the importance of innovation and strategic positioning in the auto classifieds market, where consumer preferences are rapidly evolving towards digital solutions.

CarDekho’s IPO is expected to encompass its auto classifieds, loan disbursal, and mobility businesses. This diversification is critical as it allows the company to tap into multiple revenue streams and mitigate risks associated with reliance on a single business line. Meanwhile, Insurance Dekho will remain as an associate investment and aims for a separate listing following its merger with RenewBuy, which is projected to close within the next three to four quarters. This planned separation indicates a strategic focus on maximizing the value of each business unit and ensuring that they can operate independently and effectively in their respective markets.

Interestingly, the merged entity is said to be looking to raise ₹3,000-4,000 crore from an IPO by March 2027. This ambitious target reflects the growing opportunities in the insurance sector, particularly as digital platforms continue to reshape how consumers engage with financial products. The planned IPO for the merged entity further emphasizes the trend of consolidation within the fintech and insurance spaces, as companies seek to leverage synergies and enhance their competitive positioning.

Initially, CarDekho had floated IPO plans in 2024 to raise $300 million by the following year; however, these plans were deferred in favor of achieving profitability first. This decision highlights the importance of financial health and operational efficiency, particularly in a market where investor sentiment can be influenced by a company’s profitability and growth metrics. By prioritizing profitability, CarDekho aims to present a stronger case to potential investors and ensure sustainable growth in the long term.

In its latest financial report, CarDekho group recorded a 24% year-on-year increase in consolidated operating revenue, reaching ₹2,795 crore for FY25, while its consolidated net loss slightly narrowed to ₹266 crore from ₹276 crore in FY24. This positive revenue growth, coupled with a reduction in net losses, indicates that CarDekho is on a path towards improved financial performance, which is likely to be a key selling point in its upcoming IPO.

Although the startup has yet to file its audited FY26 numbers, sources indicate that it anticipates a 15% year-on-year growth in revenue, with EBITDA projected to rise by 20-25% during the year. These projections reflect the company’s confidence in its business model and its ability to capitalize on the growing demand for digital auto solutions in India. As CarDekho prepares for its IPO, the focus will likely remain on demonstrating its growth potential and operational efficiency to attract a broad base of investors in the public market.