Kuwy launches end-to-end digital lending platform for online car sellers
Riding the ongoing digital wave and growing preference for online car purchases, Volkswagen Finance-backed automotive fintech platform Kuwy on Thursday launched “KUWYLaaS”, an end-to-end digital lending service for car buyers. online car trading platforms.
The new Lending-as-a-Service (LaaS) platform will enable vehicle manufacturers (OEMs), dealerships, aggregation platforms and lenders to offer digital retail to their customers.
“Technological innovation in KUWYLaaS will not only eliminate all the challenges associated with online car sales today, but also provide deeper insights that will enable online transaction completion at the research point by providing better shopping experience,” B Ganesh Kumar, CEO and Co-Founder, Kuwy, said during a virtual press conference.
Founded in 2017 by Kumar, the Chennai-based automotive fintech platform digitally connects dealers, lenders, OEMs and customers. It simplifies auto loans by making it easier to approve, process and disburse end-to-end digital loans. While its existing “Kuwy Prime” offering focuses on instant lending at the dealership (point of sale) level, the new “Kuwy LaaS” platform will focus on the point of search, which includes OEM websites. , dealers, automotive market and aggregators.
Kumar said the addressable market for new and used cars in India is ₹1.5 crore when considering annual car sales in these segments. He added that finance penetration is only about 20% for used cars and 70% for new cars.
“Currently, only 22 out of 1000 Indians own a car and this figure is expected to rise to 50 out of 1000 Indians in the next five years. This kind of growth is only possible with the help of digitalization,” Kumar added.
Used car sales expected to rise
In its recent report, internet-focused consulting firm RedSeer said that by FY26, used car sales are expected to reach 8.3 million units, with a healthy CAGR of 11%.
“It is estimated that most new car dealerships are now connected online through the OEM online network and benefit from targeted leads (via OEMs and car portals). Of the approximately 30,000 used car dealerships, at least 4,000 regularly spend on online automotive portals,” the report says.
Kuwy has partnerships with over 4,000 used and new car dealers, over 25 banks and NBFC for used car loans and 8 banks for new car financing. Currently, 40% of its concession partners are based in the South, followed by the North (30%), the West (25%) and the East (5%).
The automotive fintech plans to partner with 20,000 dealerships over the next four years and strengthen its market in the West, North and Northeast regions in the future.
February 03, 2022