CARS24 Financial Services, the lending arm of auto-tech-startup CARS24, has secured its first debt funding of Rs 10 crore from Vivriti Capital.
According to a survey by CARS24, 41 percent of the consumer’s intention to purchase a private car post lockdown has increased. However, availability of easy financing options has been a challenge for both dealers and consumers. Realising the potential, CARS24 will use the money to lend to small dealers and consumers across 50 cities who needs funds to buy cars.
Ruchit Agarwal, Co-founder and CFO, CARS24 said, “Our lending business has witnessed a tremendous growth trajectory in past one year. We have successfully disbursed Rs 400 crore to dealers and customers. The overwhelming response has motivated us to deepen the presence in India to over 50 cities.”
CARS24 received the licence of a non-banking financial company (NBFC) from the Reserve Bank of India in June last year and since then, CARS24 Financial Services has scaled its services across 25 cities.
CARS24 enable people to buy and sell pre-owned vehicles. The company said that within a few years of its inception, it has witnessed an exponential growth and currently employs over 3,000 people across India and has grown rapidly with more 10,000 trusted channel partners from more than 230 cities across India. CARS24 said that it has more than 210 branches in over 70 cities. The company that started with the C2B model has now added C2C, Financing, and the recently announced two-wheeler segment CARS24 MOTO under its purview.
Started in 2015, Gurugram-based CARS24 by Mehul Agrawal, Ruchit Agarwal, and Vikram Chopra is a well funded startup. Last year it raised $100 million as part of its Series D round of funding from Unbound, a London-based global investment firm, New York-based Moore Strategic Ventures, and its existing investors – KCK, Agnelli (Fiat) Family and Sequoia India.
Gaurav Kumar, Founder & MD, Vivriti Capital, said, “CARS24 has emerged as the fastest growing auto-tech startup of the country and we are confident they will scale even greater heights. We are happy to provide funding support to their NBFC arm through our platform CredAvenue, which was their first debt deal. Our common conviction in the power of tech enabled solutions to build a healthy book makes this a natural partnership.”