[Funding alert] Volkswagen Finance picks up 25pc stake in Kuwy Technology
Volkswagen Finance on Wednesday said it has picked up 25 percent stake in Chennai-based instant lending digital platform Kuwy Technology Service.
As part of the deal, the company, which supports Volkswagen Group customers in India by facilitating financing and insurance solutions, will now have access to Kuwy's pan-country network related to car financing.
"At Volkswagen Finance, we always try to add more value to our offerings and this association is a step towards the evolution of the consumer journey in the digital space," the company's MD and CEO Aashish Deshpande said in a statement.
The aim is to offer a simplified and agile solution to the company's customers, he added.
The company, however, did not share financial details.
Volkswagen Finance's association with Kuwy will help improve efficiency in processes and reduce the loan processing time, making it a win-win for both dealers and customers.
The partners will also offer finance, insurance and warranty products for Volkswagen group customers on Kuwy platform.
"We are confident of delivering comprehensive digital solutions to the Volkswagen Finance network and aiming for a mutual growth in the digital space," Kuwy Technology Service CEO B Ganesh Kumar said.
Mumbai-based Volkswagen Finance Pvt Ltd (VWFPL) was incorporated in 2009 and is owned by Germany's Volkswagen Financial Services AG, which is a wholly-owned unit of auto major Volkswagen AG.
Volkswagen Financial Services employs around 16,267 persons worldwide.
Kuwy employs over 72 people across 70 locations in the country.
Earlier this month, a retail-focused automotive leasing startup OTO Capital has raised Rs 10 crore from early-stage venture capital fund Prime Venture Partners. The Mumbai-based startup had earlier received Rs 5 crore in a Pre-Series A round of funding in December 2018, led by Venture Catalysts, along with serial entrepreneur K Ganesh and Sameer Sawhney, previously Managing Director at ANZ India.
(Edited by Suman Singh)