Fintech

Cred Launches Vehicle Management Platform “Garage,” Ventures into Car Insurance Distribution

• ByStartupStory     |    September 28, 2023

Fintech startup Cred is diversifying its services by launching a new platform called Garage, which ventures into the vehicle management space. Through Garage, Cred aims to assist users in various vehicle-related activities, such as renewing car insurance, recharging FASTags, accessing round-the-clock concierge service for roadside assistance, managing documentation like driver’s licenses and registration certificates, tracking maintenance records, gaining insights into vehicle spending, and more.

Cred’s foray into vehicle management is not only about enhancing user experience but also laying the foundation for car insurance distribution. Collecting data from users about their vehicles will enable Cred to provide a premium dataset to insurance partners, thus creating a new revenue stream. Additionally, Cred plans to offer rewards, offers, and exclusive perks to its members through the Garage platform.

With this move, Cred is entering a competitive space, challenging companies like Peak XV and Matrix-backed Park+ by providing detailed data on parked cars. It’s part of Cred’s strategy to boost user engagement and introduce new financial products to its user base.

The Garage platform will integrate with DigiLocker, allowing users to access essential documents such as driver’s licenses, registration certificates, and insurance papers. It will also send reminders for tasks like pollution checks, emission tests, and insurance renewals to help users keep their vehicles in top condition.

Cred is known for acting as a credit distribution platform for lending partners, targeting high-credit-score customers. This expansion into vehicle management demonstrates the company’s commitment to enhancing user stickiness and exploring new avenues for growth.

the company said  to ET, “While cars are an emotional asset for Indians, ownership is complex, time-consuming, and high-friction, with a number of tasks that need to be addressed regularly, such as paying challans, renewing insurance, and getting the car serviced. There is a significant overlap between unique credit card holders and car owners—both belonging to the top 10% of high-spending individuals with higher disposable income.”

Cred will introduce Garage to its entire user base, offering these services within its main app.

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