Cars24 Financial Services Pvt Ltd, a subsidiary of Cars24 Services Pvt Ltd, has raised its first debt funding of ₹10 crore from Vivriti Capital Pvt Ltd.
The capital will be utilised to lend to small dealers and consumers across 50 cities where Cars 24 operates.
Launched in 2019 with an aim to provide seamless and instant access to credit, Cars24 Financial Services provides consumers with quick and easy loan plans, one-day disbursal, 100% buy back guarantee and zero prepayment charges.
“Our lending business has witnessed a tremendous growth trajectory in past one year. We have successfully disbursed INR 400 Cr to dealers and customers, ” said Ruchit Agarwal, co-founder and chief financial officer, Cars24.
According to a survey by Cars24, 41% of the consumer’s intention to purchase a private car post lockdown has increased. However, availability of easy financing options has been a challenge for both dealers and consumers.
“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” said, Gaurav Kumar, Founder & managing director, Vivriti Capital.
This article was first published on livemint.com.