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Wisedrive, car extended warranty platform, has raised an undisclosed amount of Seed fund. The funding round led by LC Nueva Alternative Investment Fund (AIF). The round witnessed participation from Spiral Ventures, Bhavadeep Reddy, angel investor and co-founder of HousingMan. Com. The fund raised will be used to expand the platform’s reach by partnering with all used car dealers and more authorised service centres for customers for maintaining their cars and develop warranty tech to provide trust in the used car industry.
“The trust factor is still shaky when it comes to the used car space. The last 10 years in India have witnessed a revolution in the discovery of used cars, but the next ten years will see the revolution in building of trust in the used cars. Because there is lack of transparency in the service history and the usage of the vehicle, the trust level of the buyer of a used car is significantly lower,” said Kalyandhar Vinukonda, founder and CEO, Wisedrive.
Wisedrive partners with authorised service centres to maintain the cars of the warranty holders. The company will soon be directly partners with OEMs, which will give them exposure across the entirety of India. They are currently operating in Bangalore, but over the next 12 to 18 months they intend to expand their operations to all of the metro cities, claimed by the company in a statement.
“The market will expand as more people choose independent mobility and as used car financing options increase. Buyers are now looking for alternatives to new cars due to their tighter cash flow and the used car market has the significant growth potential. However, the country’s used car market saw an increased in organized and partially organized sales. 4.4 million used cars were sold in FY20,” said Ashish Chand, founding partner of LC Nueva.