CarDekho in JV with Hero for used-auto loans
10 Oct 2017
Girnar Software-owned auto site CarDekho.com partnered with Hero FinCorp to provide innovative finance packages to used-car buyers. Consumers apply on the Hero FinCorp site for used-car and new/used-motorcycle loans. Hero FinCorp is a subsidiary of the private company The Hero Group.
Hero Fincorp is a so-called non-banking financial corporation (NBFC), a fast-growing sub-sector of the Indian economy (more about it here). It will use LoanBox, CarDekho’s proprietary loan-management platform, to give a seamless loan-processing experience to potential credit-takers on the CarDekho site and its dealer network, Girnar Software said in a statement.
“This partnership will bring us closer to our aim of making used-car buying as easy as new-car buying … ,” said Amit Jain, CEO of GirnarSoft. Abhimanyu Munjal, CEO of Hero FinCorp, said his company sees platforms such as CarDekho as key players in the growth of the online consumer-lending sector.
In-house research by CarDekho identified the biggest pain points for loan-takers on used cars as, the lack of clarity on loan amounts, valuations by lenders of used cars financed, interest-rate increases, and long processing times of credit applications.
Some of these pain points will hopefully be addressed by this new joint venture. “Both companies will work to deploy technology and big data to innovate the financing experience and make it more convenient,” CarDekho wrote in its blog.
Hero FinCorp will use CarDekho’s Trustmark reports to value used cars, to speed up the processing of loan applications.
Founded in March 2008, CarDekho.com is a key contender in India’s online auto market. It has raised $65 million U.S. from Capital G, Sequoia Capital and Hillhouse Capital Group. Its direct competition is CarTrade, founded by Vinay Sanghi in 2009, which has raised $240.3 million since, from Tiger Global Management, Warburg Pincus, Temasek Holdings, March Capital Partners and a few others, according to data research company Crunchbase.