In a first, Bajaj Finance and Cars24 head for used car loan clinch

The two companies propose a co-lending structure to share the risks and rewards accruing from the disbursal of loans on their platforms.

In late October, when used car marketplace Cars24 held a meeting of shareholders in Dubai, the idea was to get their nod for an outright sale of its car financing business to Bajaj Finance, the shadow-banking arm of the Bajaj Group.

The deal itself fell through over differences in valuation, says a person with direct knowledge of the development. While Cars24 wanted a premium of 8.5% on its roughly Rs 1,500 crore book, Bajaj Finance wanted a discount.

A month on, things seem to have taken a slightly different turn. Now, both companies are set to announce a co-lending structure—one …

Author

Furquan Moharkan

Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.

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furquan@mailtmc.com

Delhi