Used car warranty platform Wisedrive raises seed funding
- ByStartupStory | August 17, 2022
Wisedrive, a car extended warranty platform has raised an undisclosed amount of seed funding from LC Nueva Investment Partners, Japanese VC fund Spiral Ventures, housingman.com founder Bhavadeep Reddy, and others.
The startup plans to utilise the funds to expand its reach by building more partnerships with used car dealerships across the country. While some manufacturers re-sell their cars with a warranty, Wisedrive plans to target this market by claiming 96 percent of used cars purchased in the country are completed through third-party sellers.
Spiral Ventures, Head of India, Sujit Kunte, said, “Wisedrive’s pioneering extended warranty product solves the fundamental issue of trust in the purchase of used cars. We are excited to see the team, with entrepreneurial experience in tech and automotive sector, develop a data-driven approach to better price the warranty and manage risk.”
Kalyandhar Vinukonda, founder and CEO, Wisedrive, said, “The trust factor is still shaky when it comes to the used car space. The last 10 years in India have witnessed a revolution in the discovery of used cars, but the next ten years will see the revolution in building of trust in the used cars. Because there is lack of transparency in the service history and the usage of the vehicle, the trust level of the buyer of a used car is significantly lower.”
“The market will expand as more people choose independent mobility and as used car financing options increase. Buyers are now looking for alternatives to new cars due to their tighter cash flow and the used car market has the significant growth potential. However, the country’s used car market saw an increased in organized and partially organized sales. 4.4 million used cars were sold in FY20,” said Ashish Chand, founding partner of LC Nueva.
About Wisedrive
Founded in 2021 by Kalyandhar Vinukonda, Wisedrive provides extended warranty to used cars. Their extended warranty program combines Engine and Transmission warranty with Service and maintenance (Only at Manufacturer Authorised Service Centre) and Roadside Assistance.
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