Volkswagen Finance India takes majority stake in Chennai fintech KUWY Technology
Volkswagen Finance Private Limited, (VWFPL) India, the wholly-owned subsidiary of German auto major Volkswagen, has increased its holding to a majority stake in Chennai headquartered fintech startup focused on automotive finance – KUWY Technology Service.
VWFPL had picked up a 25 percent stake in KUWY in September 2019. The value of both these transactions was not disclosed.
According to a statement from VWFPL,
“The strategic alliance is in line with the Volkswagen group’s - India 2.0 strategy, focused on offering added value to its consumer through digitisation of processes.”
VWFPL is expected to accrue multiple benefits from this partnership. These will include access to technology and the platform of KUWY, expertise on used car financing, grow the new care business for Volkswagen Finance, and access to this fintech’s network.
Commenting on the transaction, VWFPL MD & CEO Aashish Deshpande said,
“Our investment in KUWY is strategic in nature as we intend to make KUWY an important part of our India strategy. With this acquisition, we aim to enhance the synergies with KUWY Technology and make KUWY the face of VWFPL in India for retail financing business. This is a step towards the evolution of the consumer journey in the digital space by offering a simplified and agile solution to our customers."
As part of this transaction, VWFPL will provide KUWY access to its India network, support the growth of this fintech to an all India digital platform. Also, it could potentially give access to VWFPL network in other countries.
VWFPL said its association with KUWY will help improve efficiency in processes and reduce the loan processing time.
“KUWY is the No.1 automotive retail fintech platform for new and used cars in India and has been advancing and refining our proprietary, purpose-built platform to provide significant benefits to our growing ecosystem,” said B Ganesh Kumar, CEO, KUWY Technology Service.
KUWY employs over 154 people across 350 locations.