CARS24 Financial Services Secures 10 Cr Funding To Finance Pre-owned Cars

We at CARS24 are India's leading used car company. In light of recent events, with COVID wiping out the desire for many people across the glove to get back to public transport, we thought it only appropriate to actually figure out the trends of the general public. According to our research study focusing on the effects of the pandemic, 41 percent of the consumer’s intended to purchase a private car post lockdown. However, the availability of easy financing options or used car loans has been a challenge for both dealers and consumers.

In an effort to be more helpful for our customers and channel partners, we thought the best way to help is obviously through monetary methods. Especially in times like these when the economic instability is at an all-time high.

In what is an incredible move for the used-car industry, CARS24 Financial Services has secured its first debt funding of Rs 10 crore from Vivriti Capital.  Realizing the potential and the preference of private cars over public transport by the general public, CARS24 will use the money to lend to small dealers and consumers across 50 cities who need funds to make their dream of buying an own car come true.  

CARS24 has had the NBFC for over a year now. Since June last year, CARS24 Financial Services has helped and provided services in over 25 cities across the country. Ruchit Agarwal, Co-founder, and CFO, CARS24 said, “Our lending business has witnessed a tremendous growth trajectory in the 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.”  

We at CARS24 enable people to buy and sell pre-owned vehicles. Within a few years of our inception, we have witnessed exponential growth and currently employ over 3,000 people across India and have grown rapidly with of the network of largest trusted channel partners around 15,000 members from more than 230 cities across India.

Our aim is to keep growing and serving the customers with complete transparency, trust, and 100% effort. Keeping that in mind, starting with only the C2B model. we have now successfully ventured into C2C, Financing, and the recently announced two-wheeler segment CARS24 MOTO.

Talking about the partnership, 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.”