IPO-bound CarDekho Group, on Monday announced that it will infuse $100 million in its fintech platform Rupyy which provides financing options to automobile customers and retailers.
The investment, which will be in a mix of debt and equity, will be used to scale the NBFC (non-banking financial company) business as well as the technology stack. The company also plans to launch new product categories.
The infusion from the parent company will amplify the financing processes manifolds, said Rupyy’s co-founder and chief executive Namit Jain. “As we continue to expand in different verticals and enter new regional markets, we aim to represent 35-40% of the segment's market share.”
Rupyy, which is financed by CarDekho’s subsidiary Girnar Capital Pvt. Ltd, came into existence in April. The company crossed Rs 500 crore of monthly disbursal volume of car loans in September 2022.
It plans to hit Rs 10,000 crore annualized disbursals by March 2023. As part of its initial rollout plan, the company will focus on EV (electric vehicle) financing. It said in a release that it is in the process of setting up pan-India tie-ups with OEMs in the space.
Rupyy also recently unveiled a QR code-based loan platform to provide instant disbursements via video KYC and digital agreements. The platform is available at more than 2200 vehicle dealerships and distributors nationwide.
The used car finance industry made a strong comeback in the financial year 2022. The market is expected to grow at a compound annual growth rate (CAGR) of 11% to $14.87 billion in 2027 from $7.95 billion in 2022, as per a report by Mordor Intelligence.
In the used car lending segment, Rupyy pits against Cars24’s lending arm Cars24 Financial Services as well as other lenders such as Tata Capital, Poonawalla Fincorp and Mahindra Finance, among others.
CarDekho runs an online platform to facilitate the purchase 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 as a part of its Series E fundraise at a valuation of approximately $1.2 billion, which pushed it to the growing list of unicorn startups in India.
