CarDekho Group’s Fintech Arm Rupyy Forays Into Personal Lending Space

Rupyy, the digital lending and used car financing platform of CarDekho Group, has forayed into the personal lending space to boost revenues beyond auto loans.

The fintech arm rolled out pilots for this category in November last year.

Rupyy cofounder and CEO Namit Jain told Moneycontrol that the fintech arm will focus on disbursing small ticket personal loans worth less than INR 40,000 to grow its user base to 40-50 Mn. 

Now out of its pilot phase, the company has said it will continue to run its personal loans operation in the discovery mode. These operations are also likely to scale up with the introduction of personal loans of INR 2 Lakh and above.

As of now, these loans are being financed via its existing and new co-lending partnership like HDFC Bank, Axis Bank, Kotak Mahindra and YES Bank, along with Rupyy’s self-owned NBFC. 

Launched in 2022 by CarDekho, Rupyy is a digital lending platform which offers personal loans and loans against cars. Earlier, Jain said that the platform has tie-ups with car dealers from 90% of India’s pin codes. 

The company claims to have a strong presence in more than 1,500 locations, including Delhi, Mumbai, Hyderabad, Bengaluru, Chennai, Jaipur, Kolkata, Pune, Surat, Coimbatore, Chandigarh, Kochi and more. 

“We already have a 15% market share in the pre-owned vehicle loans segment. We don’t want to restrict Rupyy to car financing and cement its position as an end-to-end integrated financing platform,” Jain told MoneyControl.

CarDekho Group’s consolidated operating revenue increased nearly 1.5x to INR 2,331 Cr in FY23 from INR 1,600 Cr in the previous fiscal year.

In a statement, CarDekho claimed that its growth was largely driven by Ruppy, along with its insurance arm InsuranceDekho and financing business in SouthEast Asia. 

The unicorn fintech arm’s new foray comes at a time when the personal loans segment in India is touching a new peak. The Indian digital consumer lending sector is expected to touch $720 Bn by 2030, growing at a CAGR of 22% from 2023. This is due to the fact that the number of digital payment users in India is expected to reach 1.08 Bn, surpassing the US, the UK and Germany with 320 Mn, 65 Mn and 70 Mn users, respectively, by 2027.

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