CarDekho set to invest $100 million in its fintech arm Rupyy
- ByStartupStory | November 7, 2022
CarDekho Group, which is planning an IPO, disclosed on Monday that it will invest $100 million in its fintech platform Rupyy, which provides financing choices to automotive consumers and merchants.
The debt and equity investment will be utilized to grow the NBFC (non-banking financial company) business as well as the technological stack. The firm also intends to introduce new product categories.
“This infusion from our parent company will amplify the processes manifolds. As we continue to expand in different verticals and enter new regional markets, we aim to represent 35-40 percent of the segment’s market share,” said Namit Jain, Co-Founder, and CEO, Rupyy.
CarDekho operates an online platform for the buying and sale of old and new vehicles, as well as financing services. It also offers insurance to new automobile customers. In addition, the corporation has a worldwide presence in Southeast Asian nations such as Malaysia, the Philippines, and Indonesia.
Rupyy was founded in April and is funded by CarDekho’s subsidiary Girnar Capital Pvt. Ltd. Rupyy just launched India’s largest QR code-based lending platform, which is now available to over 2,200 auto dealerships and distributors across the country.
In addition, the company introduced a new auto loan category and quickly ramped it up to a Rs 50 crore monthly disbursals rate.
It intends to reach Rs 10,000 crore in annual disbursements by March 2023. The company’s initial deployment strategy will center on EV (electric vehicle) finance. It stated in a press release that it is in the midst of establishing pan-India partnerships with OEMs in the field.
In the fiscal year 2022, the used car finance industry made a significant comeback. According to Mordor Intelligence, the market is predicted to increase at a compound annual growth rate (CAGR) of 11% to $14.87 billion in 2027 from $7.95 billion in 2022.
Rupyy competes with Cars24’s lending arm, Cars24 Financial Services, as well as other lenders like as Tata Capital, Poonawalla Fincorp, and Mahindra Finance, among others, in the used automobile loan area.
“Rupyy is already on a strong growth trajectory and with this infusion, it’s ready to disrupt the entire used car finance business of our country and take it to a whole new level,” said Amit Jain, Co-Founder, and CEO, CarDekho Group.
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