CarDekho Group to invest $100 Mn. in its fintech section
On November 7, CarDekho, the IPO-bound group announced that it is going to pump in $100 million in Rupyy, its fintech arm, which offers financing help to retailers and those interested in buying cars.
The capital, that will be made in a combination of equity and debt, will serve to scale both the tech stack and the NBFC business. Additionally, new product categories will be introduced.
According to Namit Jain, co-founder and CEO of Rupyy, the parent company’s investment will greatly accelerate the funding process. He added that the company’s target is to represent about 35% – 40% of the sector’s market share as they keep growing in multiple verticals. In April, CarDekho affiliate Girnar Capital Pvt. Ltd. funded the creation of Rupyy. In September 2022, the company’s monthly disbursement volume for auto loans surpassed 500 crore.By March 2023, it hopes to reach 10,000 crore in annualised disbursals. The business will concentrate on financing for EVs (electric vehicles) as part of its original plan. In a press release, it stated that it is working to establish pan-Indian partnerships with OEMs in the industry.
Additionally, Rupyy has introduced a lending platform based on QR codes that offers quick disbursements through e-KYC and electronic agreements. More than 2200 car dealerships and distributors around the country provide the platform.
In the fiscal year 2022, the used automobile finance sector had a significant rebound. The market is anticipated to increase from $7.95 Bn in 2022 to $14.87 Bn in 2027 at an annual compounded rate of growth (CAGR) of 11%.
CarDekho operates an online marketplace to make it easier to buy and sell both new and used cars along with financial services. Additionally, it offers insurance products to those who buy cars. The business is also present abroad in Southeast Asian nations like Malaysia, the Philippines, and Indonesia.
At a value of over $1.2 billion, CarDekho recently raised $250 million in Series E funding. This brought the company into the prestigious unicorn list.
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