Girnar Software, the parent company of autotech unicorn CarDekho, is preparing for a significant market debut with a planned initial public offering of approximately ₹3,000 crore. The company is targeting a valuation of around ₹13,000 crore and intends to file its draft papers with the market regulator SEBI within the current quarter. This move signals a major milestone for the Jaipur-based firm and the broader Indian startup ecosystem.
Details of the Public Offering
The proposed IPO will consist of a fresh issue of shares and a substantial offer for sale (OFS) by existing shareholders. The fresh issue component is expected to be relatively small, around ₹300 crore, constituting only about 10% of the total issue size. This structure indicates that the primary goal of the listing is to provide a liquidity event for early investors rather than to raise significant primary capital.
CarDekho's decision to limit the fresh issue stems from its strong financial position, as the company is well-capitalized with positive operating cash flow. Major backers like Peak XV Partners, CapitalG, and Hillhouse Capital are anticipated to offload a portion of their stakes through the OFS. The company has already appointed Axis Bank, IIFL, Goldman Sachs, and Nomura as bankers to manage the public offering.
Financial Performance and Business Strategy
The company has demonstrated robust growth, with its consolidated operating revenue increasing by 24% to ₹2,795 crore in FY25. While it posted a consolidated net loss of ₹266 crore, this marked a slight improvement from the previous year. Importantly, CarDekho's core standalone business has achieved profitability for the second consecutive year, underscoring the strength of its primary operations.
Strategically, the IPO will encompass CarDekho's core auto classifieds, its fintech lending arm Rupyy, and its mobility businesses. The group has decided to exclude its insurance division, InsuranceDekho, from this public offering. This separation is designed to present a more focused and streamlined business narrative to public market investors.
Competitive Edge and Market Outlook
InsuranceDekho, which recently merged with RenewBuy, will be held as an associate investment and is slated for a separate listing in the future. This strategic carve-out allows the main CarDekho entity to highlight its autotech and fintech synergies without the complexities of the insurance business. The move is expected to be well-received by investors seeking a clear investment thesis.
In the competitive autotech landscape, CarDekho vies with listed entity CarTrade and private firms like Spinny. The company distinguishes itself through its integrated model, particularly its successful fintech arm, Rupyy, which provides a significant revenue stream from loan disbursals. This blend of classifieds and lending offers a unique advantage over competitors who focus primarily on marketplace operations.
CarDekho's impending IPO represents a pivotal moment for the company as it transitions from a private unicorn to a publicly-traded entity. The offering is structured to reward early backers while leveraging the company's profitable core business and strong market position. As it moves forward, investors will closely monitor its ability to sustain growth and achieve group-level profitability in India's dynamic autotech sector.