CARS24 adopts Pennant cloud platform for digital loans

CARS24 has overhauled its lending operations using a cloud-based servicing platform from Pennant Technologies, in a move that shifts the used-car marketplace to fully digital loan servicing and large-scale automation.

The company, which operates a digital marketplace for buying and selling cars, has implemented Pennant's pennApps Lending Factory across its lending business. The deployment replaces legacy loan servicing systems and brings core lending processes onto a single platform.

Pennant, based in Hyderabad, specialises in software for banks and financial institutions. CARS24 has been expanding its financial services arm as part of a broader push into vehicle loans, insurance and related products.

Legacy constraints

CARS24's rapid lending growth had exposed the limits of its previous systems. Manual workflows governed loan disbursements, repayments and customer communications. This created bottlenecks and restricted the lender's ability to scale.

The underlying technology also made it difficult to introduce new products. A rigid architecture and low automation meant a relatively small operations team struggled to manage rising loan volumes efficiently.

CARS24 sought a platform that could support fully digital servicing, greater operational stability and faster product roll-out. The firm also wanted tighter customer engagement through more integrated and timely communications.

Core platform overhaul

The project with Pennant formed part of a wider digital transformation programme within CARS24's financial services unit. The two companies deployed pennApps Lending Factory as the core loan management system.

The platform uses an API-led architecture and runs in the cloud. It supports modular deployment and connects to multiple external systems.

A central element of the initiative was the consolidation of data from legacy servicing systems and partner platforms. CARS24 migrated lending and servicing records into a single, integrated environment.

The new platform links with CARS24's loan origination tools, collections systems, customer relationship management software and payment gateways. This creates a connected technology stack across the lending lifecycle.

Ruchit Agarwal, Co-Founder & Group CFO at CARS24, said the change had reshaped the lender's back-end operations.

"Our partnership with Pennant Technologies has been instrumental in re-architecting our servicing operations," said Ruchit Agarwal, Co-Founder & Group CFO, CARS24. "The new digital lending platform provides the scalability, flexibility, and speed required to deliver superior customer experiences and drive innovation across our lending business."

Automation and servicing

The pennApps Lending Factory implementation shifts CARS24's servicing model towards high automation and data-driven processes. The system supports configurable repayment management rules.

It also includes controls for loan disbursements and multi-party authorisation workflows. The platform manages automated communication across channels such as email, SMS and in-app notifications.

These functions aim to tighten compliance and reduce operational risk. They also give customers more consistent information about their loans.

Pennant said the cloud-based set-up strengthens business continuity arrangements and supports scaling across regions. Asset-focused servicing functions and integrated collections tools support monitoring of each financed vehicle through its loan lifecycle.

"We are proud to partner with CARS24 on this landmark digital transformation," said Rama Krishna Raju, Founding Director & CEO, Pennant Technologies. "The implementation of pennApps Lending Factory showcases how cloud-native, API-first fintech platforms can deliver enterprise-level scalability, configurability, and operational resilience for digital-first financial institutions."

Operational impact

CARS24 now runs a fully digital, end-to-end servicing model on the new platform. The company processes large transaction volumes with limited manual intervention.

The transformation has streamlined back-office processes and reinforced checks and controls. It also gives CARS24 a technology base that can support new loan products and higher lending volumes.

The project serves as a reference case for Pennant in the digital lending and marketplace lending segments. The firm already works with banks, non-bank finance companies and digital lenders across Asia.

Pennant positions its software as suitable for loan origination, servicing and collections across high-volume portfolios. The company has been expanding its presence with clients seeking to modernise core lending infrastructure.

CARS24, founded in 2015, has built its business around simplifying car ownership. Its app and online platforms cover buying and selling vehicles, financing, insurance and vehicle scrappage.

The latest implementation embeds lending more deeply into that ecosystem. CARS24 plans to use the upgraded servicing platform as it targets further growth in vehicle finance and adjacent financial products.