[SmartCat]

Kotak Mahindra acquires vehicle financing portfolio of Volkswagen Finance
https://www.livemint.com/companies/n...789114490.html

With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around ₹1,340 crore. All these acquired loans are classified as Standard Loans as per the current RBI guidelines

All accounts are standard (No NPAs). Looks like VW customers typically pay back their car loans

[Aditya]

Kotak Mahindra acquires vehicle financing portfolio of Volkswagen Finance - Post moved to a new thread.

[CrAzY dRiVeR]

"The sale of our retail portfolio aligns to our new strategic focus towards a refined digital strategy through our subsidiary, the digital platform KUWY," VF's managing director and chief executive Aashish Deshpande said.

From KUWY website -

MUMBAI, October 24, 2019: Volkswagen Finance Pvt. Ltd. (VWFPL) India has recently entered into a strategic alliance with Kuwy Technology Service Pvt Ltd. by picking up a 25% equity stake in the latter. Kuwy Technology is one of India’s leading instant lending digital platforms and through this alliance, which was signed on 10th of September and came into effect on 10th of October, VWFPL will now have access to Kuwy’s PAN India network on car financing. The acquisition is in line with the India 2.0 strategy of VWFPL in a quest to offer better value to the consumer.

So Volkwagen claims to have sold out their inhouse company which had their own name on the board, to promote another company in which they have a 25% stake?

[Red Liner]

Originally Posted by CrAzY dRiVeR

From KUWY website -



So Volkwagen claims to have sold out their inhouse company which had their own name on the board, to promote another company in which they have a 25% stake?

This other company will not be brand specific. Plus there is a high likelihood that it will be invested into in the future by VCs, and VW remains as an institutional investor who will either cash out later like everyone else or aquire them in full if the business does well and aligns with the VW business in India. Either ways, it will be a win-win situation for VW for fairly less risk in the form of a 25% equity stake.