The CarDekho Standoff, Swiggy Rejects Report, and Vyapar Acquires Suvit

For the last few weeks, the auto-tech world waited for one headline: CarTrade acquires CarDekho. Bankers were drafting structures, valuation models were circulating, and insiders said the two companies were closer than ever. A profitable listed player absorbing a struggling unicorn - finally, a clean exit in a market where exits had dried up.

And then the whole thing fell apart. The reason: CarDekho and its investors could not accept today’s valuation reality.

CarDekho (GirnarSoft) was valued at $1.2 billion in 2021, during the peak bubble. CapitalG, Peak XV, Hillhouse, HDFC Life - all entered at premium prices. In 2021, they weren’t betting on classifieds or car loans. They were betting on the “everything auto” dream: new cars, used cars, insurance, loans, inspection, auctions. They believed they were backing India’s version of Carvana or TrueCar.

The problem? India’s used-car market never scaled the way 2021 decks predicted.

Cars24’s losses shot past ₹1,100 crore. Spinny cut expansion. OLX Autos collapsed entirely and was sold in a distress transaction. Even CarDekho’s new-car business hit demand stagnation as OEMs tightened dealer models.

This was no longer a “tech” category. It was a messy, operational, low-margin retail business wearing a tech costume.

CarTrade, on the other hand, moved in the opposite direction. It became one of the few players in the sector that actually made money. After acquiring OLX Autos India and Shriram Automall, it built a profitable auction + classifieds engine touching ~1 million annual transactions. While unicorns were burning crores on inventory, CarTrade stuck to capital-light models the market understands. That discipline is why public shareholders trust it.

And that’s exactly why the deal failed.

A listed company cannot justify a unicorn valuation for a business whose unit economics don’t support it.

Insiders say CarDekho wanted a value “close to the last round.” But CarTrade valued CarDekho on actual FY24 numbers. That difference wasn’t 10-20%, it was closer to 60-70%.

And here’s the part most people won’t say aloud: CarDekho needed this deal more than CarTrade did.

After three years of no IPO, no secondary exits, and tightening capital markets, late-stage investors were finally pushing for liquidity. Peak XV and CapitalG exited Policybazaar and Urban Company partially; they need similar pathways for CarDekho. A CarTrade merger was the best shot at a clean exit without writing down the entire position.

But the valuation anchor of $1.2 billion became the choke point. Take the number too low, and funds must mark down their books aggressively. Take it too high, and CarTrade gets punished by the public markets.

Ultimately, the public markets won. They always do.

It marks the end of the idea that unicorn valuations from the bubble years can be defended indefinitely. It shows that public-market discipline now sets the ceiling, not founder narratives. And it warns VCs that refusing a realistic exit can sometimes be worse than accepting a painful one.

CarTrade will continue consolidating the space - quietly and profitably. It bought OLX Autos when no one else even wanted to look at it. It digested Shriram Automall when unicorns were busy raising capital. It plays the long game.

CarDekho, meanwhile, goes back to the boardroom with the same problem: investors who need liquidity, and a market unwilling to pay 2021 prices. It’s not a bad company. It’s just a company priced for a world that no longer exists.

In the end, it was a reminder that valuation is not a memory - it’s a moving number.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Kehdo Ye Jhoot Hai”: Swiggy Rejects Report Claiming Instamart Losing Market Share To Zepto

Swiggy has pushed back firmly, noting that the report suggesting Instamart is losing share to Zepto rests on data that simply doesn’t exist. It pointed to Redseer’s confirmation that no analysis was ever shared with HSBC or the publication behind the claim.

With that, Swiggy has cast the numbers circulated by Zepto as unsupported, adding a quiet but pointed edge to an already tense rivalry in quick commerce.

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“Tis Not The Right Time”: CarTrade Pulls Plug On CarDekho Acquisition

CarTrade has quietly stepped back from its much-speculated CarDekho acquisition, choosing instead to double down on its existing portfolio. This comes just weeks after reports suggested the two were circling a deal worth over $1.2 Bn, a figure that had the auto-tech world buzzing.

For now, the company has closed the door it once cracked open, leaving the industry to wonder what shifted behind the scenes.

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“Suswagatam Suswagatam”: upGrad Appoints Former G20 Sherpa Amitabh Kant To Its Board

upGrad has brought former G20 Sherpa Amitabh Kant onto its board, hoping his global know-how will help shape its push into new-age skilling and overseas markets.

The timing is striking, coming just as upGrad throws its hat into the ring for BYJU’S parent Think and Learn and weighs a potential all-stock move for Unacademy.

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“Hum Saath Saath Hai”: Vyapar Acquires Suvit To Boost AI-Led Accounting Automation For MSMEs

Vyapar has snapped up Suvit to deepen its push into AI-led accounting automation, giving India’s MSMEs a sharper set of digital compliance tools. Suvit’s founder Ankit Virani will now steer these automation capabilities from within Vyapar, stitching them into the platform’s growing ecosystem.

With India’s accounting software market projected to hit $5.75 Bn by 2030, this move feels like a quiet but calculated step toward that expanding horizon.

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1. Sports For Life has raised ₹21.6 Cr to push into Bengaluru and Delhi NCR, aiming to onboard over ten thousand new users while expanding its sports lineup and launching a cricket vertical. Backed by investors like Blume Ventures and Kunal Shah’s QED Innovations Lab, the startup is also sharpening its AI-led analytics and livestreaming platform.

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2. NEWME is set to raise $12 Mn from Point72 Ventures and Accel, a move that may lift its valuation to nearly $100 Mn to $120 Mn. With existing investors doubling down and fresh debt recently secured, the fast-fashion label is clearly gearing up for a sharper growth sprint.

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3. Zerodha has invested $5 Mn in Tijori, strengthening the stock-analysis platform that already powers insights for its Kite users. Tijori now plans to push into the enterprise segment with AI-driven tools for mutual funds, asset managers, and insurers, hinting at a wider shift in how big money will make decisions.

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4. Square Yards has raised $35 Mn at a pre-money valuation of $900 Mn, putting the real estate platform within touching distance of unicorn status. With an ₹2,000 Cr IPO on the horizon next year, the company seems to be quietly tightening its grip on the spotlight.

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5. Yuvrit Ayurveda has raised $800K from Incubate Fund Asia to expand its clinic network across Bengaluru and deepen its medical training and standardisation efforts. The startup also plans to hire senior Ayurvedic doctors and boost public awareness around evidence-based preventive health practices.

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6. CloudExtel has secured ₹200 Cr in debt to expand its fibre network and roll out a new Data Centre Interconnect system starting in Mumbai. With shareholders also contributing fresh equity, the company is gearing up to link major metros with high-capacity, low-latency infrastructure built for soaring AI and cloud workloads.

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