Rupyy by CarDekho The Catalyst for Democratizing Auto Loans Across India

Rupyy by CarDekho The Catalyst for Democratizing Auto Loans Across India

CarDekho Group has introduced its digital lending platform, Rupyy, with the aim of ensuring convenient and cost-effective access to loans for both new and used cars, two-wheelers, and electric vehicles (EVs).

Rupyy reported an annualized run rate of INR 12,000 Cr in loan disbursements, reflecting an 88% year-on-year growth in revenue.

Rupyy crossed Rs 500 crore of monthly disbursal volume of car loans in September. The brand plans to hit Rs 10,000 crore annualised disbursals by 2023.

The infusion has been planned to scale up the NBFC Business, and technology and launch new product categories, said CarDekho which raised $250 million in October last year, taking its valuation to $1.2 billion and becoming the 31st unicorn of 2021 in the country.

Rupyy, the digital lending platform of the CarDekho Group, has raised over $100 million in funding since its inception in 2020. This includes a $30 million Series A funding round in 2021 led by Sequoia Capital India and a $70 million Series B funding round in 2022 led by Tiger Global Management. The company has also secured debt financing from leading banks and financial institutions.

Democratizing Auto Loans: A Paradigm Shift

Rupyy steps in to address these challenges by offering a simplified and inclusive approach to auto loans. Its digital platform eliminates the need for physical paperwork and lengthy manual processing, significantly reducing the time-to-loan disbursement. Additionally, Rupyy's expanded reach extends to Tier II and Tier III cities, catering to the underserved populations in these regions.

Rupyy’s primary market research shows that the Indian used car financing market, valued at $ 6.82 Bn, is projected to reach a value of $13 Bn at a CAGR of approximately 24% during the forecast period from FY2024 to FY2027.

Key Factors Driving Rupyy's Success

Several factors contribute to Rupyy's success in democratizing India's auto loans landscape:

1.Technology-Driven Approach: Rupyy leverages advanced technology to streamline the loan process, making it faster, easier, and more accessible. Its digital platform provides a user-friendly interface, real-time loan approval, and seamless integration with CarDekho's vehicle marketplace.

2.Data-Driven Insights: Rupyy utilizes data analytics to gain a deeper understanding of customer behavior and risk profiles. This data-driven approach enables the platform to tailor loan offerings to individual needs, enhancing customer satisfaction and reducing credit risks.

3.Partnerships and Collaboration: Rupyy has established strategic partnerships with leading banks and financial institutions, expanding its reach and diversifying its loan products. This collaborative approach ensures a wider range of financing options for customers with varying credit profiles.

4.Financial Inclusion Focus: Rupyy prioritizes financial inclusion by extending its services to underserved regions and customer segments. This focus aligns with the Indian government's initiatives to promote financial literacy and access to credit.

Impact on the Indian Automotive Ecosystem

Rupyy's democratization of auto loans has a significant impact on the Indian automotive ecosystem:

1.Enhanced Vehicle Affordability: By simplifying access to financing, Rupyy makes car ownership more affordable for a broader segment of the population. This, in turn, drives demand for automobiles, stimulating growth in the automotive sector.

2.Financial Empowerment: Rupyy empowers individuals with financial independence, enabling them to make informed decisions about vehicle purchases. This financial empowerment fosters a sense of economic well-being among consumers.

3.Economic Growth and Job Creation: The increased demand for automobiles fueled by Rupyy's services leads to job creation in the automotive manufacturing, sales, and service sectors. This economic activity contributes to overall economic growth and development.

Conclusion: A New Era of Financial Inclusion

Rupyy's disruptive approach to auto loans is transforming the Indian automotive landscape, making car ownership a reality for millions of individuals. With its emphasis on technology, data-driven insights, partnerships, and financial inclusion, Rupyy is paving the way for a more inclusive and prosperous future for the Indian automotive ecosystem. As the platform continues to expand its reach and refine its offerings, it is poised to play an even more significant role in democratizing auto loans and driving financial inclusion across India.

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November 29, 2023

Kalpana Maurya