Bengaluru-based car extended warranty startup Wisedrive Technologies Pvt Ltd on Tuesday said it has secured $1 million (around Rs 7.5 crore) in a seed funding round led by LC Nueva Investment Partners, with participation from Spiral Ventures and Bhavadeep Reddy (Co-founder of HousingMan.com).
The platform plans to use the fresh funds to expand its operations with tie-ups across car dealers and authorised service centres.
Founded by Kalyandhar Vinukonda in 2021, Wisedrive offers warranty service to help its customers maintain their cars and increase resale value, it said.
“The last ten years in India have witnessed a revolution in the discovery of used cars, but the next ten years will see a revolution in the building of trust in used cars. Because there is a lack of transparency in the service history and the usage of the vehicle, the trust levels of the buyer of a used car are significantly lower…there is a lack of trust, and we want to make up for it by establishing a relationship of trust with our customers,” said Kalyandhar Vinukonda, Founder and CEO of Wisedrive.
“The market will expand as more people choose independent mobility and as used car financing options increase. Buyers are looking for alternatives to new cars due to tighter cash flow, and the used car market has significant growth potential. The used car market is expanding as the pandemic slows new car production and sales. Going forward, we anticipate a significant increase in demand for the extended warranty that Wisedrive currently offers for this market segment,” said Ashish Chand, Founding Partner of LC Nueva.
LC Nueva Investment Partners is a partnership between Lighthouse Canton and Nueva Capital. In April, it has secured Rs 224.8 crore or $30 million, marking the first close of its debut venture fund, VCCircle rported.
Earlier this month, fintech lender Credit Fair has secured $10 million in a mix of equity and debt as part of its extended seed round from LC Nueva Investment Partners.
In June, Dream Road Technologies Pvt Ltd, which runs used-car leasing startup PumPumPum, secured equity funding of $2 million (Rs 15.4 crore) from LC Nueva Investment Partners, among others.