Cars24 Financial Services, a subsidiary of automobiles classified services provider Cars24 Services, on Thursday said it raised about $1.3 million in a debt funding round from Vivriti Capital.
The fresh capital will be used to expand dealer and consumer lending across 50 cities in India, the statement said, adding that the firm disbursed loans worth over $53 million in the past year alone.
“Our lending business has witnessed a tremendous growth trajectory in the past one year… We are expanding our services, considering now people are inclined more towards private vehicles due to the pandemic situation,” Ruchit Agarwal, CFO of Cars24, said.
According to a survey by the Gurugram-based company, consumer intention to purchase a private car after the Covid-19 lockdown has increased 41%.
“We are happy to provide funding support to their non-banking financial company (NBFC) arm through our platform CredAvenue, which is their first debt deal,” Gaurav Kumar, founder at Vivriti Capital, said.
Launched in 2019 with an aim to provide instant access to credit, Cars24 Financial Services has a presence in 25 cities. The parent company, which operates in 230 cities, was founded in 2015 by Mehul Agrawal and Vikram Chopra, after they sold FabFurnish to the Future Group.
According to its latest financials, Cars24 reported a 150% increase in revenues for the financial year 2018-19 to Rs 1,654 crore. Its losses, however, widened to Rs 326 crore from Rs 79 crore a year ago.