CARS24 Expands Financial Services with LOANS24 Launch

A Strategic Move to Simplify Automotive Financing and Empower Car Buyers

CARS24, a leading e-commerce platform for pre-owned vehicles, has taken a significant step towards diversifying its services with the launch of LOANS24, a comprehensive digital credit platform. This new initiative is aimed at transforming the way car buyers and owners access financing, offering a range of digital loan products, from new car financing and loans against cars to personal loans. LOANS24 enhances CARS24’s position in the automotive and financial services sectors, providing a seamless and efficient solution to simplify the financing process for car purchasers.

LOANS24: A Revolutionary Digital Credit Platform

LOANS24 was initially designed to serve as a platform focused on financing for used cars. However, with the growing demand for digital financial products, the platform has evolved into a comprehensive digital credit platform catering to both new and used car buyers. The platform allows customers to access fully digital, hassle-free loans with quick disbursals. A standout feature of LOANS24 is its ability to offer loans without requiring a car valuation, a significant shift from traditional financing processes that typically involve extensive paperwork and delays.

The platform’s user-friendly interface ensures a smooth loan application process for customers, enabling them to secure funding swiftly, without the need for physical documentation or face-to-face interactions. By eliminating the traditional barriers to financing, LOANS24 makes it easier for buyers to access the funds they need to purchase a car. This simplicity is expected to appeal to a wide demographic, from first-time car buyers to experienced owners looking for additional financing options.

Beyond offering car loans, LOANS24 also focuses on helping customers track and improve their credit scores. By providing access to personal loans and tools for financial management, the platform encourages greater financial literacy, making it easier for customers to understand and improve their creditworthiness. This effort aligns with CARS24’s broader goal of empowering consumers with the financial tools and knowledge they need to make smarter decisions.

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CARS24’s Impressive Revenue Growth

In its fiscal year ending March 2024 (FY24), CARS24 reported a significant 25% increase in revenue, reaching INR 6,917 crore, up from INR 5,530 crore the previous year. This growth is largely attributed to a strong surge in both unit sales and the average selling price per car, with the company selling more than 200,000 cars in the year—marking the highest annual sales in its history. However, the revenue boost didn’t solely come from vehicle sales. CARS24’s expansion into the financial services sector, including the launch of LOANS24, contributed substantially to this growth, particularly within the insurance and financing segments. These non-core segments outpaced the traditional used-car sales, demonstrating the increasing significance of financial services in the company’s overall revenue mix.

Strategic Plans and IPO Prospects

As part of its broader strategy, CARS24 is positioning itself for future growth by preparing for an Initial Public Offering (IPO). The company’s expansion into financial services, particularly with the launch of LOANS24, plays a crucial role in its IPO ambitions. By diversifying its offerings and solidifying its presence in the digital lending space, CARS24 is positioning itself as a comprehensive platform that goes beyond just selling cars.

The introduction of LOANS24 is a pivotal step in CARS24’s journey towards becoming a one-stop digital solution for all things automotive. With a growing portfolio of financial products and services, the company is well-placed to leverage its digital-first approach to capture a larger share of the automotive and lending markets. By simplifying the financing process for car buyers and owners, CARS24 aims to transform the automotive financing landscape.

Conclusion: Revolutionizing Automotive Financing

The launch of LOANS24 marks a defining moment for CARS24 as it expands its services beyond just selling pre-owned vehicles. By embracing technology and innovation, the company is reimagining the way people approach car financing, making it more accessible and less complex. Through LOANS24, CARS24 is not only helping customers secure the funds they need to buy cars but also empowering them to take control of their financial futures. This launch positions CARS24 as a key player in the evolving automotive financing ecosystem, promising to redefine how consumers access credit in the car industry.