CARS24 Financial Services, the lending arm of Gurugram-based auto-tech-startup CARS24, announced that it has secured Rs 10 crore debt funding from Vivriti Capital.
According to a survey conducted 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 need funds to buy cars.
Speaking about the startup, 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.”
Started in 2015 by Mehul Agrawal, Ruchit Agarwal, and Vikram Chopra, CARS24 recently raised $100 million as part of its Series D 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.
Commenting on the funding, 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.”
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
