New Delhi: Volkswagen Finance Pvt Ltd (VWFPL) India on Monday announced that it acquired a majority stake in the instant lending digital platform KUWY Technology Service Pvt Ltd on January 5, 2021. VWFPL had acquired a 25% stake in the lending firm in September 2019.
Volkswagen Finance said it will develop its new and used car business through KUWY’s pan India network for car financing. The acquisition is also in line with the Volkswagen Group’s India 2.0 strategy. It will enable VWFPL to offer added value to its consumers through digital channels.
Aashish Deshpande, MD and CEO of Volkswagen Finance Pvt Ltd, said, “Our investment in KUWY is strategic. We intend to make it an important part of our India strategy. With this acquisition, we aim to enhance our synergies with KUWY Technology and make it the face of VWFPL in India for retail financing business.”
Supporting the multi-brand approach of KUWY, we are still open to further investors – also under the new additional conditions, he said.
The financing firm said its association with KUWY will help improve efficiency in processes and reduce the loan processing time, making it a win-win for both the dealers and the customers.
VWFPL will, however, continue to provide dealer funding and insurance products and services to the Volkswagen India Group’s dealer network.
“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 will grow stronger with scale,” Ganesh Kumar, CEO, KUWY Technology Service Pvt. Ltd, said.