CarDekho Group infuses $100 million into its fintech arm

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. It is also planned to launch new product categories.

The infusion from the parent company will strengthen the funding processes, said Rupyy’s co-founder and managing director Namit Jain. “As we continue to expand in different verticals and enter new regional markets, we aim to represent 35% to 40% of the segment’s market share.”

Rupyy, funded by CarDekho’s subsidiary Girnar Capital Pvt. Ltd, came into being in April. The company crossed ₹500 crore of monthly car loan disbursement volume by September 2022.

It plans to reach Rs 10,000 crore in annual payouts 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 (original equipment manufacturers) in the space.

Rupyy has also recently unveiled a QR code-based lending platform to provide instant disbursements via video KYC and digital agreements. The platform is available at more than 2,200 car dealers and distributors across the country.

The used car finance industry made a strong comeback in fiscal 2022. The market is expected to grow at a compound annual growth rate (CAGR) of 11% to reach $14.87 billion in 2027 from $7.95 billion in 2022.

In the used car lending segment, Rupyy competes against CARS24’s lending arm CARS24 Financial Services as well as Tata Capital, Poonawalla Fincorp and Mahindra Finance, among others.

CarDekho operates an online platform to facilitate the buying and selling of used cars and new cars as well as financial services. It also offers 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 part of its Series E fundraising at a valuation of around $1.2 billion, helping it make it to the coveted unicorn list.