Volkswagen Finance acquires majority stake in Chennai-based KUWY Technology

Volkswagen Finance Pvt Ltd (VWFPL) India, a company jointly owned by Volkswagen Financial Services AG, Germany, and Volkswagen Finance Overseas BV, Netherlands, has announced that it acquired a majority stake in KUWY Technology Service Pvt Ltd, a Chennai-based instant lending digital platform on January 5, 2021. 

Recently, Volkswagen Finance picked up 25 per cent stake in the lending platform.

Volkswagen Finance said it will develop its new and used car business through KUWY’s pan India network for car financing. The acquisition is also in line with the Volkswagen Group’s India 2.0 strategy. It will enable VWFPL to offer added value to its consumers through digital channels.

Commenting on the development, Aashish Deshpande, MD and CEO of Volkswagen Finance Pvt Ltd, said, “Our investment in KUWY is strategic. We intend to make it an important part of our India strategy. With this acquisition, we aim to enhance our synergies with KUWY Technology and make it the face of VWFPL in India for retail financing business.”

Supporting the multi-brand approach of KUWY, we are still open to further investors – also under the new additional conditions, he said.

The financing firm said its association with KUWY will help improve efficiency in processes and reduce the loan processing time, making it a win-win for both the dealers and the customers.

VWFPL will, however, continue to provide dealer funding and insurance products and services to the Volkswagen India Group’s dealer network.

“Our platform enables each of these constituents to benefit from enhanced access to each other and to our technology, resulting in a virtuous cycle of increasing engagement and value creation. We believe our ecosystem will grow stronger with scale,” Ganesh Kumar, CEO, KUWY Technology Service Pvt. Ltd, said.

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