Tech-enabled pre-owned car retailers, CARS24, have received an NBFC (non-banking financial corporation) licence from the Reserve Bank of India.
With their new RBI licence, CARS24 will be able to offer their potential clients seamless and instant access to credit. With that aim, the company has also formed of a separate entity, CARS24 Financial Services Pvt Ltd, under the CARS24 group. They will be launching their services in Delhi, Mumbai and Bangalore this month and will scale up to the other cities gradually.
CARS24, a used car buying and selling platform, will now be able to facilitate vehicle loans to customers as well as finance channel partners to help them expand their businesses. While the customers will be eligible for a credit based on the car value they are buying, channel partners will be eligible to a credit as high as Rs 1 crore depending upon their requirement.
Commenting on the launch, Mehul Agarwal, Co-founder and COO, CARS24 said, “The pre-owned car industry in India has seen a rapid growth in past few years across peripheries and demands a more simplified model which can aid the complexities of consumer business. To achieve this, over the last four years, we have codified all the processes and created an internal playbook on how to buy quality cars at best price. As a next step, our key objective is to address the challenges that are being faced by the sellers and buyers of non-metro cities. We are filling the vast gap of a dependable partner in the used car segment and are associating the entrepreneurial spirit and local talent of non-metro cities with our platform for a seamless execution. The launch is in line with our business expansion plan and we intend to make more such announcements in near future.”
The company is present in 35 cities with over 150 branches and the move to strengthen reach further will entail launching 100 more outlets by the end of this year and scale up presence in more than 300 Tier 2, 3 and 4 markets by the year 2021.
