The fragmented online auto classifieds market witnesses its first big consolidation move as CarDekho acquires Ibibo Group-owned Gaadi.com, for an undisclosed amount. The combined CarDekho and Gaadi entity is expected to become the largest online auto classifieds play by revenue and traffic.

Jaipur-based Girnar Software, which owns internet portals CarDekho, BikeDekho and PriceDekho, had received $15 million in funds from Sequoia in November last year.

Both the companies will continue to run independently and operate as separate businesses in order to drive focus, especially in the pre-owned car business. While the management teams of each of these entities will continue to build their businesses, GirnarSoft will look to create cross-synergies in product development for consumers and dealers, as well as in back-end operating systems. 

According to a Times of India report, CarDekho is expected to have paid $11 million for Gaadi. The transaction will see the Ibibo Group completely exit the Gurgaon-based Gaadi, which it bought in 2011.

Commenting on this acquisition, Umang Kumar, Co-Founder and CEO, Gaadi.com said, “Gaadi.com grew 10x in 3.5 years as a part of Ibibo Group and together with CarDekho we can scale our leadership in the used car business even faster.”

“Bringing CarDekho.com and Gaadi.com together creates outright marketleadership for us in online auto in terms of visitors, dealer base and revenue. CarDekho.com is already #1 in the new car segment, and growing rapidly with its OEM and dealer tie-ups.” said Amit Jain, Founder & CEO, GirnarSoft.

Ashish Kashyap, CEO of Ibibo Group, said the company wants to focus on the online travel sector across its assets: Goibibo.com, TBOGroup, Redbus.in and YourBus. "We have significant scale in each of these businesses and would want to further expand in this sector," he said.

The core business model of CarDekho and Gaadi is earnings from lead generation for new and used cars, and media sales on their portals. The two put together boast of more than 2,500 car dealer tie-ups across the country, the largest among auto portals. Besides these, CarDekho helps retail over 4,000 cars per month for eight OEM manufacturers that it partners with.