India-based automotive portal CarTrade.com has launched certification, valuation and transfer (of ownership) services to fill the gap in the used car financing space.
Founder and CEO Vinay Sanghi argued that while the market for used car finance in India is estimated to be around Rs 1.2 lakh crore, only about 8% cent of the used cars sold are financed by an organised financier. This is because the financier needs data on the value of the vehicles, its condition, certification, name transfer, etc and there are few services available to assist in this process.
"We have started working on these aspects for a bank or financier. We have piloted our auto finance services about a month back and provide services on certification, valuation and transfer," he said in an interview with Business Standard.
In addition to focusing on this gap in the market, CarTrade is also considering an IPO in the next few years.
To date the automotive portal raised around $180 million from investors and does not rule out going public to offer an exit.
"We might go for an IPO to offer an exit to our investors, and that should be in the next two to three years time," Sanghi said.