The funds will be used by the company to expand its reach by partnering with all used car dealerships and more authorized service centers for customers to service their cars and develop technology for warranty to instill confidence in the used car industry. Wisedrive’s extended warranty includes free used car maintenance at a manufacturer authorized service center and Pan India roadside assistance to customers at no extra cost, reducing the number of problems caused by the engine and transmission of the vehicle. In this way, it enables customers to trust cars from offline car dealerships and helps used car dealerships close the deal 60% faster than before.
There are a few companies that offer extended warranties on their used or used vehicles in India; however, this segment of the market represents less than 1% of the total. Local used car dealerships account for over 96% of the used car market and are unable to extend extended warranty benefits to their customers. Wisedrive adopted a distribution strategy by partnering with used car dealerships and attempting to fix the problem at the source. Extended Warranty is a globally accepted financial product with over 95% acceptance in the US, Europe and other parts of the world as it ensures trust and transparency in the car industry second hand. Wisedrive’s extended warranty covers both engine and transmission (manual and automatic). , and is currently exploring other components to add to its product roadmap. In addition to this, they offer Pan India RSA for free to all their warranty holders.
In a statement, Wisedrive Founder and CEO Kalyandhar Vinukonda said, âThe trust factor is still fragile when it comes to the used car space. The last ten years in India have witnessed a revolution in the discovery of used cars, but the next ten years will see a revolution in building trust in used cars.Because there is a lack of transparency in the maintenance history and the vehicle use, used car buyer confidence levels are significantly lower.Despite this, India sells 6 million used cars every year, a number that is growing at a rate of compound annual growth (CAGR) of 15% year over year There is a lack of trust, and we want to make up for it by building a relationship of trust with our customers, so we have partnered with resorts -offline service to offer customers experience ience and streamlined process each time they bring in their vehicles for repairs or maintenance.
Ashish Chand, Founding Partner of LC Nueva, said, âThe market will grow as more people choose independent mobility and used car financing options increase. Buyers are looking for alternatives to new cars due to tighter cash flow, and the growing potential used car market. The used car market is growing as the pandemic slows production and sales of new cars. However, the country’s used car market has seen an increase in organized and partially organized sales. 4.4 million used cars were sold in fiscal 2020, compared to 2.8 million new passenger cars. The Indian market, which is price and mileage sensitive, is expected to see an increase in demand. In the future, we expect a significant increase in demand for the extended warranty that Wisedrive currently offers for this market segment.
Sujit Kunte, Head of India at Spiral Ventures, said, âWisedrive’s extended warranty product solves the fundamental problem of confidence in buying used cars. We are excited to see the team, with entrepreneurial experience in the automotive x technology sector, developing a data-driven approach to better warranty pricing and risk management.
Wisedrive has partnered with authorized service centers of brands such as Honda, Hyundai,
, Volkswagen, Skoda, Mahindra Tata and Toyota. They will soon partner directly with OEMs, giving them visibility across India. They currently operate in Bangalore but plan to expand to all metros in the next 12-18 months.
Ankul Maheshwari, Founder of CENSIE Capital Partners, said, âUsed car warranty extension is a white space in India, despite there being enough global examples, no one has been able to Indianize the solution to make it a win-win solution for both buyer and seller. Wisedrive was part of âStellarStory 2.0â, a program launched by CENSIE which was the exclusive financial advisor for this transaction.