[Funding Alert] CARS24 Financial Services Raises INR 10 Cr From Vivriti CapitalCARS24 will use the new fund to lend to small dealers and consumers across 50 cities who need funds to buy cars

CARS24 Financial Services, a subsidiary of CARS24 Services, on Thursday announced that it has secured its first debt funding of INR 10 crore from Vivriti Capital.

The company through a survey realized that post lockdown, 41 per cent of consumers' intention to purchase a private car has increased. However, the lack of availability of easy financing options has been a hurdle for both dealers and consumers. Realizing this potential, CARS24 will use the fresh funds to lend to small dealers and consumers across 50 cities who need funds to buy cars.

Commenting on the development, Ruchit Agarwal, co-founder and chief financial officer, CARS24, said, "Our lending business has witnessed a tremendous growth trajectory in the past one year. We have successfully disbursed INR 400 crore to dealers and customers. The overwhelming response has motivated us to deepen the presence in India to over 50 cities. We gladly welcome Vivriti Capital to join us in our journey to offer a seamless financing option to dealers and consumers. With their trust and capital, we are expanding our services, considering now people are inclined more towards private vehicles due to the pandemic situation."

"CARS24 has emerged as the fastest-growing auto-tech start-up of the country and we are confident they will scale even greater heights. We are happy to provide funding support to their NBFC arm through our platform CredAvenue, which was their first debt deal. Our common conviction in the power of tech-enabled solutions to build a healthy book makes this a natural partnership" said Gaurav Kumar, founder and managing director, Vivriti Capital.

Launched in 2019 to provide seamless and instant access to credit, CARS24 Financial Services has been running its services across 25 cities.