Bike Bazaar, a two-wheeler sales and financing business, announced that DEG, a KfW Group subsidiary with its headquarters in Germany and a development finance institution, has contributed an extra Rs 82 crore (or nearly $10 million) to its capital. Bike Bazaar has completed its most recent round of investment with a total equity capital of Rs 250 crore (about $30 million).

In September of last year, it raised Rs 170 crore under the direction of Women World's Banking Asset Management (WAM). Elevar Equity and Faering Capital, two current investors, have also taken part in the fund raiser.

The company claims that it will use the fresh capital to strengthen its consumer and business-to-business (B2B) focus on electric mobility while also expanding its penetration into rural Indian markets. According to Srinivas Kantheti, co-founder and managing director of Bike Bazaar, "Bike Bazaar is doubling down on electric two-wheeler financing by offering products including lease and rental solutions especially for last-mile delivery in the e-commerce & food-delivery market."

Bike Bazaar, which was originally founded in 2017 as a used two-wheeler financing company by former Bajaj Auto executive Kantheti and former Bajaj Finance executive Karunakaran Vadakkepat, now operates several businesses in the two-wheeler market, including a marketplace for pre-owned two-wheelers, a new electric vehicle financing business, as well as additional services like leasing and insurance. According to company officials from a year ago, it was planning to offer servicing for two-wheelers as well.

The company has received a total of Rs 482 crore in equity capital since its founding. "By providing funding, we are assisting a pioneering financial institution in expanding so that it can continue to promote financial inclusion among underrepresented groups, particularly women and small and medium-sized businesses. Additionally, we are particularly enthusiastic about the prospects in India's electric mobility market, according to Monika Beck, a member of the DEG executive board.

Bike Bazaar currently has 1,000 touch points in the states of UP, Bihar, MP, Rajasthan, and West Bengal and is present in over 140 Indian towns. Over 375,000 two-wheeler loans have been disbursed through Bike Bazaar's financing division to date, and as of December 2022, the company had disbursed a total of Rs 2000 crore in loans, according to the company. By the end of the current fiscal year, it now hopes to reach an average run rate of Rs 1000 crore in loan disbursements.