Droom partners with Qbera to offer instant loan for vehicle purchase

Online automobile e-commerce platform Droom has partnered with a fintech lender startup Qbera to offer financing options for buying second-hand or pre-owned cars and bikes on its platform.

According to company’s statement, customers can take a pick from available options and finance their vehicle with unsecured personal loans from Qbera.

It will disburse loan of up to Rs 7.5 lakh in 24 hours.

"We are offering a new-age auto financing option to make the loan disbursal process smoother, more affordable, and paperless," Droom Founder and CEO Sandeep Aggarwal said.

Qbera thinks too that this initiative will help customers at large. The fintech firm pursues a risk-based approval procedure and offers borrowers instant loans at the same rate in the shortest span of time.

"Traditional lenders have exhaustive and strict criteria when it comes to funding auto loans for pre-owned vehicles,” said Qbera Founder and CEO Aditya Kumar. Bangaluru-based firm  offers unsecured loans for salaried consumers with operations in Bangalore, Chennai, Hyderabad, Mumbai, Pune and Delhi. The firm claims that it is on track to reach a loan book of about Rs 65 crore by March 2018.

In India, the pre-owned car market has witnessed exponential growth over the years with approximate annual sales of 3.6 million cars, according to a report.

Earlier last week, Droom said it has brought down burn rate down and eyes hitting profitability by next year. Every year it has been burning Rs 100 crore a year.

Droom founder and CEO Sandeep Aggarwal said he expects the company's annual revenue run rate to touch Rs 200 crore, up from about Rs 90 crore now.

This year the company had raised $20 million (around Rs 130 crore) in a round led by Integrated Asset Management (IAM). The company has raise around $65 million from investors like Lightbox, Beenos, Digital Garage and Beenext.

Founded in 2014, Droom is an online marketplace to buy and sell cars and two-wheelers. In last few years, the company has forayed into allied services like fair value calculator, roadside assistance and auto loans in a bid to increase revenue.