Mumbai based two-wheeler financing startup OTO Capital raises $6 million from Matrix Partners
The investment round involved new and existing investors like Prime Venture Partners, 9Unicorns, Better Capital, Asish Mohapatra of Business, Ramakant Sharma of Livspace, Kunal Shah of Cred, K Ganesh of BigBasket and Suhail Sameer and Ashneer Grover of BharatPe.
The company will utilize the funds to raise its user base, hire talent and scale up its tech platform.
“With this investment, the company plans to launch its financing-cum-commerce platform in 15 new cities, including Delhi, Nashik, Indore and Vijaywada,” said the company.
“We are re-imagining the two-wheeler buying and ownership experience for millions of Indians. Customers can research, schedule test drives at home, avail of innovative and flexible financing options, and complete the purchase via our platform,” said Sumit Chaazed, Co-Founder, OTO Capital.
OTO Capital was founded in 2018 by Harsh Saruparia and SumitChhazed with its presence in Bengaluru, Hyderabad, Chennai, Pune and Mysore. This startup provides flexible, pocket-friendly and hassle-free bike ownership. It also provides affordable plans at 35 percent lower EMIs than Banks. It provides the benefit of maintenance, the eventual sale of the vehicle, full auto lifecycle management and from credit underwriting to insurance.
According to the startup, it has grown upto 4 times in the past 12 months, while keeping non-performing assets below 1 percent. The startup has partnered with non-banking financial companies and banks to provide financing options. They have committed Rs 250 crore in loans for the next 12 months.
“In the world’s largest two-wheeler market, the consumer’s preferences are changing. [They are increasingly] buying online, stretching their budget for quality and upgrading faster. OTO caters to this new consumer with a new model of buying, financing and ownership,” said Vikram Vaidyanathan, Managing Director, Matrix India.