Cars24 and Bajaj Finance team up to finance used car buyers
Cars24, a leading e-commerce platform for used vehicles, has partnered with Bajaj Finance Ltd., to lift the veil on used car financing and facilitate a fast, smooth and efficient shopping experience. streamlined.
The move follows a Series G funding round announced in December 2021, in which the company raised $ 400 million at a valuation of $ 3.3 billion. As consumer demand for used vehicles skyrockets, the penetration of consumer finance in India’s used car industry is only around 15%. Realizing the key role finance plays when investing in a car, Cars24 and Bajaj Finance Ltd., help consumers by improving their financial flexibility and providing greater accessibility to car ownership.
“Cars24 is about to rewrite the rules of the industry. We are on a mission to make more Indians’ dream of owning a car come true by focusing on providing a fully transparent financing solution to our consumers, ”said Ruchit Agarwal, Co-Founder and CFO of Cars24. “In this process, we are convinced that our partnership with Bajaj Finance Ltd. will prove to be perfectly suited to the product market. Cars24, together with BFL, puts the consumer at the forefront when it comes to financing used car purchases, all combined with ease of use, the highest quality customer experience and transfer of control to the consumer.
Cars24 Financial Services Pvt Ltd, a wholly owned subsidiary of Cars24 Services Private Limited, provides car loans to used car buyers, making loans simpler, safer, faster and more accessible. This mutually beneficial partnership will lead to increased penetration in the used car industry and enable consumers to get the hassle-free customer experience of Cars24 with financial solutions from Bajaj Finance Ltd.
“Providing a simple and accessible financing solution is at the heart of Bajaj Finance. This synergistic partnership promotes the idea of used car financing to a wider audience. We believe that there is huge potential in the used car segment and that the right financial solutions will only help customers make the right decision when exploring this option, ”said Anup Saha, Dy. CEO Bajaj Finance Ltd. “Customers can now expect a completely seamless shopping experience, coupled with fast approvals, minimal documentation and other value-added services and offerings. “
Cars24 competes with players such as Droom, Ola, CarDekho, CarTrade and Spinny who also bet on the used car market. The Indian used car market will grow at a compound annual growth rate (CAGR) of 11% to record sales of up to 8.3 million units by FY 26, according to consulting firm RedSeer, marking a trend of people preferring personal vehicles for travel in the coronavirus.
The used car market is expected to more than double to 8.2 million units or $ 47 billion in the next five years ending fiscal 26, from 4 million in $ 21 or $ 17 billion, this which means two used cars will be sold for every new car sold, according to a report by investment bank JM Financial. The used car market was 4.4 million units worth $ 19 billion in the pre-pandemic FY20, according to the report which also predicted a clear highway for the card market. used cars driven by pandemic-induced demand for personal mobility and affordability because after the BS-VI implementation cost of new cars has increased.