India-based used-car marketplace CarDekho is to invest $100 million in Rupyy, its auto financing non-banking financial corporation (NBFC), a fintech that was launched in April. This rebranded CarDekho’s financial services offering as Rupyy. It now has a dedicated website and team.

According to a news release, this investment will be a mixture of debt and equity and will be used to scale Rupyy’s operations, enhance its technology and launch new products. Rupyy also intends to play a bigger role in the financing of electric vehicles and is in talks with a number of EV OEMs with regard to the formation of strategic partnerships.

According to CarDekho, Rupyy’s monthly car loan disbursal volume reached $61 million (INR5.0 billion) in September, and it is targeting $1.2 billion in annualized disbursals by March next year.

Amit Jain, co-founder and CEO of CarDekho Group, said: “We have always built consumer-centric businesses, and hence giving an exceptional consumer experience within the best possible turnaround time is what Rupyy has been doing. On the back of best-in-class tech-based solutions and learnings, Rupyy has solved all the challenges that a customer faces when applying for a used-car loan. Rupyy is already on a strong growth trajectory, and with this infusion, it’s ready to disrupt the entire used-car finance business in our country and take it to a whole new level.”

CarDekho was recently in the news after unveiling a partnership with Indian e-commerce giant Flipkart. This announcement was preceded by the appointment of Sharad Saxena as CEO of its used cars business. The company has also recently launched financing for new cars, with a monthly disbursal of $6 million.

Founded in 2008 and headquartered in Jaipur, CarDekho is owned and operated by GirnarSoft, which runs a number of other auto portals, including Gaadi, ZigWheels and Carmudi Philippines. GirnarSoft’s consolidated revenues for FY2021 (the 12 months to March 2021) grew 24% year on year, while expenses increased by 18%. GirnarSoft is aiming to make CarDekho profitable before holding an IPO in 2023.

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