Fintech startup Cred has launched a new platform, Garage, through which it will seek to help users renew their car insurance and recharge FASTags, among other activities.
Through Garage, Cred is looking to offer users a single dashboard that will also allow them to access a round-the-clock service for roadside assistance and documents including their driver’s licence and registration certificate. It will provide insights on performance and spending made on the vehicle, including on fuel.
According to two people in the know, Cred’s new offering for vehicle management is aimed at also providing a strong car insurance distribution platform for its financial partners, as the fintech firm looks to open new revenue streams.
Collecting information from users on vehicles will allow it to provide a more premium data set to insurance partners.
“As expected from Cred, members will also enjoy rewards, offers and deals across transactions. Members can also renew motor insurance (through the platform) and get member-exclusive perks,” the company said in a press statement.
Cred currently acts as a credit distribution platform for its lending partners and hinges its differentiation on high credit score customers.
With the new platform, the startup will be taking the fight to Peak XV and Matrix-backed Park+, as it looks to provide granular data on parked cars in an easy-to-read dashboard. Park+ also offers customers the option to renew or buy motor insurance from its platform.
Cred has been pushing to ensure stickiness on its platform, diversifying from just offering credit card bill payments, and has launched features such as the Unified Payments Interface on its app in recent months. Garage is another effort to keep users stay with it.
Cred did not directly respond to ET’s queries around its car insurance distribution plans.
“While cars are an emotional asset for Indians, ownership is complex, time-consuming, and high-friction, with a number of tasks that need to be addressed regularly, such as paying challans, renewing insurance, and getting the car serviced,” the company said in response to ET’s queries. “There is a significant overlap between unique credit card holders and car owners—both belonging to the top 10% of high-spending individuals with higher disposable income.”
The Garage platform will have DigiLocker integration, which will allow users to access essential documents such as their driver’s licence, registration certificate and insurance papers.
The platform is also expected to provide reminders to users for tasks such as pollution checks and insurance renewals.
Cred will roll out Garage to its entire user base starting Thursday. The service will be housed on its main app.
