Girnarsoft’s auto website CarDekho has partnered with non-banking financial company (NBFC) Hero FinCorp to offer financing options for used car buyers. CarDekho had launched a loan platform for used cars last year and at the time it had tied up with lenders such as HDFC Bank, Axis Bank, Tata Capital and Mahindra Finance.
Hero Fincorp will use the company’s loan management platform, to provide loan processing service to potential borrowers on CarDekho’s online platform and its dealer network. Both the companies will work closely to deploy technology and big data to make the used car financing experience more convenient. In addition, Hero FinCorp will use CarDekho Trustmark report to assess the valuation of used cars to allow faster processing of used car loan applications.
Expansion into insurance
Meanwhile, earlier this year, CarDekho’s parent Girnarsoft received a licence from the Insurance Regulatory and Development Authority (IRDA) to launch an auto insurance vertical. The vertical named as ‘Girnar Insurance Brokers’ will provide insurance buying, locate cashless services garages, settle claims and offer documentation to car owners. Girnar Insurance Brokers will be launching an app that will understand the risk profile of a user and advise them on buying a policy.
HDFC Bank investment
In 2015, HDFC Bank invested in CarDekho and the bank had said that their partnership will allow CarDekho’s users to buy a new or used car with possible financing from the lender. At the time, the car portal expected digital to have a 25% share in auto loan financing in the next 4 years and planned to facilitate auto loans worth a $1 billion through its portal. It also claims that around 75% of its users buying cars on the portal opt for a financing option. Last year, CarDekho said that it facilitated annualized loan GMV of over $20 million since the launch of the pilot in Delhi NCR.