New Delhi: Fuelled by increased vehicle demand and technology-driven business models the auto financing sector is witnessing a surge in opportunities globally. Car loans are projected to grow at a CAGR of 6.5%, surpassing USD 385 billion by 2028. Despite low car ownership in India, innovative approaches, especially in used car financing, are driving substantial growth.
To address this, CarDekho’s financial arm, Rupyy, was launched in April 2022. Rupyy, a digital lending platform, caters to diverse vehicle loans, ensuring accessibility and affordability across India. Unlike typical lending tech startups, Rupyy has a substantial backstory, originating from CarDekho’s financial services established in 2016. Anticipating a spike in demand during the pandemic, CarDekho obtained an NBFC license in 2022.
Rupyy’s platform connects buyers, dealers, and lenders, streamlining the entire loan process. As of August 2023, it boasts of an annualized run rate of INR 12,000 crore in loans and a customer base exceeding 2 lakh. Rupyy collaborates with major banks like HDFC, ICICI, Axis, Kotak Mahindra, and YES Bank, reaching over 1500 locations in India.
Rupyy’s success lies in its commitment to eliminating traditional barriers in automobile financing. Initially focused on used car financing, it has expanded into new car financing and two-wheeler loans. The platform’s revenue surge of 88% YoY and an 82% increase in its customer base underscore its growth.
Despite challenges in the nascent market, Rupyy navigated hurdles such as lender risk-aversion and title transfer complexities. Leveraging a data-backed asset pricing engine and a network of over 1100 RTOs, Rupyy streamlined the loan approval process. The platform’s innovative solutions, like QR code-based onboarding and AI/ML-driven document verification, contribute to its success.
Rupyy targets sustained growth in the Indian used car financing market, expected to reach USD 13 billion by FY2027. The platform aims for a 100% YoY revenue growth in FY24, expanding its geographic coverage to 97% of pin codes. Despite potential challenges, the used car market’s significant growth and continued reliance on financing present opportunities for Rupyy.
As the industry evolves, Rupyy remains focused on building trust, understanding unique customer needs, and delivering an exceptional customer journey. With lending playing a crucial role in car purchases, Rupyy is well-positioned to capitalize on the growing Indian auto loans market.
