IPO-bound CarDekho’s fintech arm Rupyy looks to disburse Rs 900-1,200 cr in used commercial vehicle financing in FY25

Rupyy has a market share of about 15 percent in the Rs 60,000-crore used car financing industry (Representative image)

Rupyy, the vehicle financing arm of IPO-bound CarDekho, has clocked in Rs 300 crore in loan disbursals for used commercial vehicle financing within seven months of launching the offering, and targets to close the financial year 2025 at Rs 900-1200 crore of disbursals, Co-founder and CEO Namit Jain told Moneycontrol.

The fintech is a loan aggregator, which has been offering vehicle and used car loans for nearly a decade, and has a market share of about 15 percent in the Rs 60,000-crore used car financing industry.

“Used commercial vehicles industry is double the size of used cars financing market at Rs 120,000 crore. Yet, the margin profiles of customers are largely similar. We plan to have a 10 percent market share in this category in the next three-four years,” Jain said.

Rupyy is seeing nearly 60-70 percent of demand for the used commercial vehicle financing coming from Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra and Punjab.

Jain has been focussing on improving end-customer experience, having reduced timeline to get a loan from 45 days to 15 days for users.

“We have a robust retail distribution network of over 15,000 channel partners across all our existing product categories. We will target similar outreach and distribution across commercial vehicles hub. We already have about 10 banks and NBFCs as our strategic partners in CV business and we are excited to build end-to-end digital experiences for Used CV customers together,” he said.

Plans ahead

Next up, Rupyy will also expand beyond passenger vehicle financing, and solve for retail finance customers too. “We want to solve for more challenging categories where not much innovation has happened and we can really create change and disrupt the consumer experience. So after vehicle financing, the only other category left was commercial vehicle, which we've done this year. We'll be investing heavily in scaling this category in the next two years.”

Over the next two-five years, Rupyy will be exploring business loans including unsecured and secured lending for SMEs and MSMEs – the core concept being giving them better consumer experience.

“We acquired an NBFC license about two years ago, and now we've started to capitalize on NBFC. Our focus in the next two to five years is also going to be on capitalizing that NBFC further, working with banks on the co-lending model and innovate on consumer experiences, because banks are the ones who have the lowest cost of fund, and the biggest balance sheets available,” Jain said.

Rupyy’s parent CarDekho is currently in the midst of doing an initial public offering (IPO) to raise about Rs 3,000-4,000 crore.

Jain said, “Whenever CarDekho plans to go for an IPO, the brand (Rupyy) will only flourish. Whatever proceeds we get from the IPO, whatever money that we raise is going to be used for financing the growth for Rupyy as well, along with other subsidiary brands of CarDekho.”