CarDekho’s parent, Girnar Software, plans to file draft papers with SEBI this July-September for an IPO targeting a valuation between ₹13,000-15,000 crore, significantly higher than its last funding valuation of ₹9,000 crore five years ago.
- IPO size up to ₹3,500 crore with 10% fresh issue
- Valuation target of ₹13,000-15,000 crore
- Multiple businesses included except InsuranceDekho
What happened
Girnar Software, the parent company of the auto classifieds platform CarDekho, is set to file a draft red herring prospectus (DRHP) with SEBI in the July-September quarter of 2026 for an initial public offering (IPO) sized between ₹3,000 and ₹3,500 crore. The IPO will include both fresh shares issuance and an offer for sale, with the fresh issue expected to form about 10% of the total offering.
The company is targeting a valuation ranging from ₹13,000 crore to ₹15,000 crore, a marked increase from the ₹9,000 crore valuation during its last equity funding roughly five years ago. CarDekho has appointed multiple banking partners, including Axis Bank, Goldman Sachs, IIFL, and Nomura, to manage the IPO process, which may be submitted via a confidential filing route.
Why it matters
CarDekho became a unicorn in 2021 and has since diversified with a range of businesses including auto classifieds, edtech, fintech, shared mobility, and insurance sectors. The IPO will cover core businesses such as auto classifieds, loan disbursal, and mobility, while InsuranceDekho is planned to follow a separate listing post its merger with RenewBuy, expected within the next year.
The company has demonstrated steady growth with consolidated operating revenue climbing 24% year-on-year in FY25 and improvements in net losses. Investors like Google's CapitalG, Hillhouse Capital, and HDFC Bank underpin its strong financial backing, underscoring confidence in its business model amid an increasingly competitive sector that includes players like CarTrade and Cars24.
What to watch next
The market will be closely monitoring the IPO filing and disclosure of CarDekho’s latest audited financials for FY26, which are expected to show continued revenue growth of around 15% and an EBITDA increase of 20-25%. The size of the fresh issue versus offer for sale will also indicate the company's capital needs and shareholder intentions.
Additionally, the progress and eventual completion of the InsuranceDekho-RenewBuy merger remains a key development. The merged entity's anticipated IPO by March 2027, with plans to raise ₹3,000-4,000 crore, will significantly impact the group’s future capital markets strategy and investor interest in the broader CarDekho ecosystem.