Cars24 Lending arm raises Rs 10 crore in debt funding
The startup is looking to lend aggressively to help consumers buy private transport mode to deal with the pandemic
July 09, 2020 / 01:47 PM IST
Cars24 Financial Services, the lending subsidiary of Cars24 - the online platform for selling used cars, has raised debt funding of Rs 10 crore from Vivriti Capital, mainly for onward lending to its customers looking to pick up used cars.
As per an internal survey Cars24 found out that 41 percent of the consumer’s intention to purchase a private car after the lockdown has gone up. Hence, easy financing options will help more people get a private mode of transport.
Cars24 will use the funds raised to lend to small deals and consumers across 50 cities where it is operational.
“Our lending business has witnessed a tremendous growth trajectory in past one year, we have successfully disbursed Rs 400 Cr to dealers and customers. The overwhelming response has motivated us to deepen the presence in India to over 50 cities,” said Ruchit Agarwal, the chief financial officer at Cars24.
Cars24 applied for a lending licence in 2019 with the aim of offering credit to consumers trying to buy used vehicles and dealers for their businesses.