Volkswagen Finance India on Monday said that it has acquired a majority stake in automotive fintech company KUWY Technology for an undisclosed amount to leverage the latter’s network to grow its new and used car financing business.
The Volkswagen Group’s financing arm had first bought a 25% equity stake in the latter in September 2019. KUWY Technology is an instant lending platform that digitally connects borrowers to lenders.
“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 Volkswagen Finance Private Limited (‘VWFPL’) in India for retail financing business,” Aashish Deshpande, managing director of VWFPL, said in a statement.
“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,” he further said.
VWFPL was open to getting further investors onboard in KUWY, Deshpande said.
While KUWY will handle retail financing, VWFPL will continue to provide dealer funding and insurance products and services to the Volkswagen India Group dealer network.
VWFPL is owned by Volkswagen Financial Services AG, Germany, which in turn is a fully-owned subsidiary of Volkswagen AG.
Source: Economic Times