Auto classifieds startup CarDekho’s parent company, Girnar Software, is set to file draft papers with SEBI for an initial public offering (IPO) worth ₹3,000-3,500 crore in the July-September quarter, according to inc42.com. The IPO will include both a fresh issue and an offer for sale (OFS), with the fresh issue expected to be around 10% of the total size. CarDekho aims for a valuation between ₹13,000 crore and ₹15,000 crore, up from its last valuation of ₹9,000 crore about five years ago.
The company has appointed Axis Bank, IIFL, Goldman Sachs, and Nomura as bankers for the IPO. The draft red herring prospectus (DRHP) is likely to be filed confidentially, though this is not yet finalized. Large shareholders are expected to sell part of their stakes through the OFS. CarDekho, which became a unicorn in 2021, counts investors such as Peak XV Partners, Hillhouse Capital, CapitalG, LeapFrog Investments, Times Internet, and HDFC Bank among its backers. A source told inc42.com that the startup is well capitalized with positive operating cash flow, reducing the need for a large fresh issue.
This IPO move comes as CarDekho seeks to capitalize on its growth since its last funding round five years ago. The valuation increase reflects the company's strengthened market position in the auto classifieds sector. Compared to other Indian startups that have recently gone public, CarDekho’s IPO size and valuation place it among notable tech listings this year. The mix of fresh issue and OFS indicates both capital raising and partial exits by existing investors, a common approach in the current IPO market.
The filing of the DRHP is expected within this quarter, marking a significant step for CarDekho toward becoming a publicly traded company. The startup was founded in 2008 by Amit Jain and Anurag Jain and has grown to be a key player in India's auto classifieds space, with a valuation target of up to ₹15,000 crore for the IPO, according to inc42.com.