- Volkswagen Finance has increased its shareholding in KUWY Technology to a majority stake
- The strategic alliance is in line with the Volkswagen group’s – India 2.0 strategy, focused on offering added value to its consumer through digitization of processes
- The key objectives of the alliance are for:
o KUWY to provide VWFPL India with access to its:
§ Technology and platform (www.kuwy.in)
§ Expertise on Used Car financing
§ Grow the New Car Business for VWFPL
§ Access to the KUWY network
o VWFPL will provide KUWY with:
§ Access to VWFPL India’s network
§ Support the growth of KUWY to a PAN India digital platform
§ Potential access to VWFPL network in other countries
MUMBAI, January 11, 2021: Volkswagen Finance Pvt. Ltd. (VWFPL) India has increased its shareholding in KUWY Technology Service Pvt Ltd. by picking up a majority equity stake in the latter. This comes in succession to the first 25% equity stake investment, from September 2019. KUWY Technology is one of India’s leading instant lending digital platform and through this acquisition, which came into effect on January 5, 2021, Volkswagen Finance Pvt Ltd will grow its New & Used Car Business through KUWY’s PAN India network on car financing. The acquisition is also in line with the Volkswagen Group’s – India 2.0 strategy of VWFPL in its quest to offer added value to its consumers through digital channels.
Speaking on the development, Mr. Aashish Deshpande, MD and CEO of Volkswagen Finance Pvt. Ltd. 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. Through this association VWFPL will grow its New and Used Car business through KUWY’s PAN India network and technology platforms. Supporting the multi-brand approach of KUWY, we are still open to further investors – also under the new additional conditions.”
VWFPL’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. VWFPL will however, continue to provide Dealer funding & Insurance products and services to the Volkswagen India Group dealer network.
“KUWY is the No.1 Automotive Retail Fintech P latform for New & Used Cars in India and have been advancing and refining our proprietary, purpose-built platform to provide significant benefits to our growing ecosystem of Dealers, DSA’s, Portals, Consumers, OEM’s and Bank Partners. Our platform enables each of these constituents to benefit from enhanced access to each other and to our technology, resulting in a virtuous cycle of increasing engagement and value creation. We believe our ecosystem grows stronger with scale” added Mr. B. Ganesh Kumar, CEO – KUWY Technology Service Pvt. Ltd.
Information for Editors:
About Volkswagen Finance Private Ltd:
Volkswagen Finance Private Limited (‘VWFPL’), incorporated in 2009 and headquartered in Mumbai is owned by Volkswagen Financial Services AG, Germany. Volkswagen Financial Services (‘VWFS’) AG is a 100% owned subsidiary of Volkswagen AG and has its headquarters in Braunschweig, Germany. Volkswagen Financial Services is a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA and Canada that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania brand and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 16,571 employees worldwide – including 7,414 alone in Germany. Volkswagen Financial Services report total assets of around EUR 223.5 billion, an operating result of EUR 2.96 billion euros and a portfolio of around 21.5 million current contracts (as at: 31.12.2019).
VWFPL currently supports customers of the Volkswagen Group in India by facilitating delivery of innovative financing and insurance solutions. With our comprehensive range of financial service products, we make a significant contribution to the promotion and securing of Volkswagen Group sales and strengthen the link between our customers and the Group brands. Metaphorically speaking our innovative financial services open our customers the door to their dream car – Volkswagen Financial Services: The key to mobility.
About KUWY Technology Service Pvt. Ltd.:
KUWY is an Automotive FinTech Company, powering Instant Lending across Point of Sale. KUWY connects borrowers to lenders and uses its “Click & Drive” Technology to Digitize each step of the Loan Origination Process and has the largest and most trusted Dealer/Lender network to grow loan originations and digital retailing. Headquartered in Chennai, India, KUWY employs over 154 people across 350 locations.