Mumbai, Jan 11: Volkswagen Finance on Monday said it has increased its shareholding in Chennai-based instant lending digital platform, KUWY Technology Service, by picking up a majority stake in the latter.
Volkswagen Finance had earlier in September 2019 picked up 25 per cent stake in KUWY Technology Service Pvt Ltd.
“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 company,” Volkswagen Finance said in a release.
“With this acquisition (additional stake), which came into effect on January 5, 2021, Volkswagen Finance Pvt Ltd will grow its new and used-car business through KUWY’s pan-India network on car financing,” it added.
The company, however, did not disclose the quantum of additional stake it acquired.
Incorporated in 2009 in Mumbai, VWFPL, is owned by Germany’s Volkswagen Financial Services AG, which is a wholly-owned unit of auto major Volkswagen AG.
“Our investment in KUWY is strategic in nature as we intend to make it an important part of our India strategy. With this acquisition, we aim to enhance the synergies with KUWY Technology and make it the face of VWFPL in India for retail financing business,” said Aashish Deshpande, MD and CEO of Volkswagen Finance Pvt Ltd.
This is a step towards the evolution of the consumer journey in the digital space by offering a simplified solution to customers, Deshpande said, adding, “supporting the multi-brand approach of KUWY, we are still open to further investors – also under the new additional conditions.”
Volkswagen Finance in association with KUWY will help improve efficiency in processes and reduce the loan processing time, the company said.
VWFPL will, however, continue to provide dealer funding and insurance products and services to the Volkswagen India Group dealer network, it added.
“KUWY has been advancing and refining our proprietary, purpose-built platform to provide significant benefits to our growing ecosystem of dealers, DSAs, portals, consumers, OEMs 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,” said B Ganesh Kumar, CEO – KUWY Technology Service Pvt Ltd. (PTI)
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