The online auto marketplace CarDekho intends to give its fintech company Rupyy a $100 million investment, split between loan and stock.
The finance division plans to expand its non-banking financial company (NBFC) operations using the alleged money. The potential investment will also be used to establish new product categories and strengthen the company’s technology division.
“The procedures will be further amplified by this injection from our parent firm. We intend to hold 35 to 40% of the market share for the category as we continue to grow across several verticals and enter new regional markets,” said Namit Jain, Co-Founder, and Chief Executive Officer of Rupyy.
Six months ago CarDekho announced the establishment of its fintech subsidiary vehicle marketplace.
Amit Jain, CEO of CarDekho Group, commented on the news saying that Rupyy has eliminated all of the difficulties that a consumer would have while qualifying for a used automobile loan. With the addition of this funding. Rupyy is currently on a strong development trajectory. This thing transforms the used automobile financing industry in a new dimentionsh in our nation.
CarDekho is an online marketplace for both new and old vehicles, and it was established in 2007 by Anurag Jain. A number of automotive platforms are also provided by the Umbrella company, including Gaadi.com, ZigWheels.com, BikeDekho.com, and PowerDrift.com.
After obtaining $200 Mn in a Series E fundraising round headed by Leapfrog Investments, the Delhi-based business became a unicorn in October of last year.
CarDekho Collaborates With Rupyy
The startup’s finance division CarDekho Financial Services joined with Rupyy in April of this year. Since then, the website has evolved into a digital lending platform that provides consumers with a variety of financial products, including loans for cars, people, and two-wheelers.
According to Rupee, the monthly volume of vehicle loan disbursements reached 500 Cr in September. By the conclusion of the current fiscal year, the firm wants to increase its annualized disbursals to INR 10,000 Cr.
Additionally, Rupyy intends to concentrate on EV Financing and claims to be formulating a plan to establish Pan-India tie-ups with OEMs in the sector.
In FY21, CarDekho recorded a consolidated net loss of INR 342.8 Cr despite having generated INR 884.3 Cr in sales.
Rupyy mostly competes with rival Cars24 Financial Services, which offers loans, as well as other well-known competitors like Mahindra Finance and Tata Capital. These firms have created fintech subsidiaries in order to get a part of the expanding car loan industry as the competition for such markets grows. However, since the market continues to perform poorly and there is a general lack of optimism among investors, several businesses are attempting to improve unit economics.
CarDekho is an online marketplace for both new and old vehicles and it was established in 2007 by Anurag Jain.
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