The CarDekho group injects $100 million into its fintech branch

NEW DELHI: IPO-linked CarDekho Group said on Monday it would inject $100 million into its fintech platform Rupyy, which offers financing options to automotive customers and retailers.

The investment, which will consist of a combination of debt and equity, will be used to scale the business of NBFC (non-bank financial corporation) as well as the technology stack. It also plans to launch new product categories.

The parent company infusion will amplify funding processes, said Rupyy co-founder and chief executive Namit Jain. “As we continue to expand into different verticals and enter new regional markets, we aim to capture 35% to 40% of the segment’s market share.”

Rupyy, financed by CarDekho subsidiary, Girnar Capital Pvt. Ltd, came into being in April. The company has gone through 500 crore monthly auto loan disbursement volume in September 2022.

It plans to reach 10,000 crore in annualized disbursements by March 2023. As part of its initial rollout plan, the company will focus on financing EVs (electric vehicles). It said in a statement that it was setting up pan-India links with OEMs (original equipment manufacturers) in the space.

Rupyy also recently unveiled a QR code-based lending platform to provide instant disbursements through video KYC and digital agreements. The platform is available at more than 2,200 vehicle dealerships and distributors across the country.

The used car finance industry made a strong comeback in fiscal 2022. The market is expected to grow at a compound annual growth rate (CAGR) of 11% to reach $14.87 billion in 2027, compared to $7.95 billion in 2022.

In the used car loan segment, Rupyy competes with CARS24’s lending arm, CARS24 Financial Services, as well as Tata Capital, Poonawalla Fincorp and Mahindra Finance, among others.

CarDekho operates an online platform to facilitate the buying and selling of used cars and new cars as well as financial services. It also provides insurance services to car buyers. The company also has an international presence in Southeast Asian countries, including Malaysia, the Philippines and Indonesia.

CarDekho last raised $250 million in its Series E fundraising round at a valuation of around $1.2 billion, helping it land on the coveted unicorn list.

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