Girnar Software Pvt. Ltd. which runs CarDekho, an online portal for new and used cars, on Tuesday rolled out a fintech platform Rupyy to offer financing options to automobile customers and retailers.
CarDekho Financial Services business will be transformed and merged under this new brand, Rupyy aims to enable customers to apply and get an instant approval for all their auto financing requirements, the company said in a statement.
As of March 2022, CarDekho Financial Services has disbursed over Rs 400 crore in used car loans and has achieved annual recurring revenue of over Rs 5,000 crore in loan disbursals, it said.
“Auto finance has traditionally been one of the most slow-moving categories when it comes to customer experience. On average, the turnaround time to get a loan is upwards of 4-5 days due to several long & physical processes. These processes not only inconvenience customers but also impact the working capital cycle of auto retailers,” said Namit Jain, Co-Founder and CEO of Rupyy.
“Rupyy consolidates our learnings from the past to provide a modern end-to-end digital experience from lead generation to loan disbursal to the title transfer.
In future, we intend to add more categories as well as co-create financial products that offer a new-age way of owning an automobile in India. Our aspiration is to represent 35-40% market share in the segment over the next 3-5 years,” he added.
The used car finance industry made a strong comeback in the fiscal year 2022. The total loans disbursed by organized financiers were upwards of Rs 29,000 crores, registering a year-on-year growth of 60%. India's used car finance penetration is also low at 18% compared to 75% for new cars.
CarDekho said it believes that the industry is likely to grow at an annualized rate of 20% reaching the $10 billion mark by FY27.
Currently, CarDekho operates across key segments of buying and selling used cars, retailing new cars and financial services which include providing financing and insurance to car buyers.
It also has an international presence in Southeast Asian countries including Malaysia, the Philippines and Indonesia.