Companies operating in the financial sector are now going nine yards for including technologies in their offering just to deliver a seamless user experience. In one such instance, Volkswagen Finance, a subsidiary of Volkswagen Financial Services, has recently announced increasing its shareholding capacity in Chennai-based KUWY Technology Service by taking over a majority stake in the company.
Speculations have it that the financial terms of the deal have not yet been disclosed. It has been reported that VWFL had already acquired about 25% stake in KUWY in September 2019 and now, with this acquisition, Volkswagen would look forward to the possibility of growth in its new and used car business via KUWY’s pan-India network on car financing.
In addition to this, the deal is also in line with Volkswagen Group’s India 2.0 strategy of VWFPL in its mission to deliver added value to its customers through digital channels. On top of that, VWFPL’s alliance with KUWY would help enhance the efficiency in processes and reduce the loan processing time making it a win-win situation for both customers as well as dealers.
Commenting on the novel move, MD and CEO of Volkswagen Finance Pvt Ltd., Aashish Deshpande cited that the company’s investment in KUWY is highly strategic as the team intends to make the platform an integral part of VWFL’s India strategy.
He added that this purchase deal would enable the company to enhance its synergies with KUWY Technology and make it the face of VWFPL in the nation for retail financing business. Aashish also stated that the acquisition stands to be a milestone towards the evolution of the consumer journey in the digital space by delivering an agile and simplified solution to its customers PAN-India.
Meanwhile speaking on the potential acquisition, CEO of India’s no.1 Automotive Retail Fintech platform, KUWY- B Ganesh Kumar quoted that the company has been advancing and refining its purpose-built, patented platform to offer considerable benefits to its expanding ecosystem of DSA’s, Dealers, Consumers, Portals, bank partners, and OEM’s.
Furthermore, the platform also enables each of these elements to leverage the benefit from improved access to each other and KUWY’s technology, leading in a cycle of increasing engagement and value creation.
Source Credit: https://www.business-standard.com/article/companies/volkswagen-finance-acquires-majority-stake-in-kuwy-tech-for-undisclosed-sum-121011100594_1.html