The funds will be put to use by the company in order to expand their reach by partnering with all used car dealers and more authorised service centres for customers for maintaining their cars and develop warranty tech to providing trust in the used car industry. Wisedrive’s extended warranty comes with free maintenance of used car at manufacturer authorised service centre and Pan India roadside assistance to customers at no additional cost, thereby reducing the number of problems that are caused by the vehicle’s engine and transmission. In this manner, it makes it possible for customers to trust cars at offline car dealers and helps used car dealers to close transaction 60% faster than before.
There are a few companies that offer extended warranties on their second hand or used vehicles in India; however, this segment of the market accounts for less than one percent of the total. Local used car dealers account for more than 96 percent of the market for used cars and are unable to extend the benefits of extended warranty for their customers. Wisedrive adopted a distribution strategy by partnering with used car dealers and attempting to solve the problem at source. Extended warranty is a worldwide accepted financial product with more than 95 percent acceptance in USA, Europe and other parts of the world as it ensures trust and transparency in used car industry, Wisedrive’s extended warranty covers both the engine and the transmission (Manual and Automatic), and is currently exploring more components to add to its product roadmap. In addition to that, they offer free Pan India RSA to all of their warranty holders.
In a statement, founder and CEO of Wisedrive, Kalyandhar Vinukonda said, “The trust factor is still shaky 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 the building of trust in used cars. Because there is a lack of transparency in the service history and the usage of the vehicle, the trust levels of the buyer of a used car are significantly lower. Despite this, India sells 6 million used cars every year, a number that is growing at a compound annual growth rate (CAGR) of 15% year over year. There is a lack of trust, and we want to make up for it by establishing a relationship of trust with our customers. Thus we have partnered with offline service stations to provide customers with a streamlined experience and process whenever they bring their vehicles in for repairs or maintenance.”
Ashish Chand, Founding Partner of LC Nueva stated, “The market will expand as more people choose independent mobility and as used car financing options increase. Buyers are looking for alternatives to new cars due to tighter cash flow, and the used car market has significant growth potential. The used car market is expanding as the pandemic slows new car production and sales. However, the country’s used car market saw an increase in organised and partially organised sales. 4.4 million used cars were sold in FY2020, compared to 2.8 million new passenger cars. The Indian market, which is sensitive to price and mileage, should see an increase in demand. Going forward, we anticipate a significant increase in demand for the extended warranty that Wisedrive currently offers for this market segment.”
Sujit Kunte, Head of India, Spiral Ventures commented, “Wisedrive’s extended warranty product solves the fundamental issue of trust in the purchase of used cars. We are excited to see the team, with entrepreneurial experience in tech x automotive sector, develop a data-driven approach to better price the warranty and manage risk.”
Wisedrive has partnered with authorised service centres of brands like Honda, Hyundai,
, Volkswagen, Skoda, Mahindra Tata and Toyota. They will soon be directly partnering with OEMs, which will give them exposure across the entirety of India. They are currently operating in Bangalore, but plan to extend to all the metros in the next 12–18 months.
Ankul Maheshwari, founder, CENSIE Capital Partners stated, “Extended warranty for used car is a white space in India, despite of having enough global examples nobody has been able to Indianized the solution to make it a win-win for buyer and seller both. Wisedrive was the part of ‘StellarStory 2.0′, a program launched by CENSIE that was the exclusive financial advisor for this transaction.