OTO Capital, a digital commerce and lending startup has raised $10 million, to expand its footprints in 30 cities and consolidate its existing partnerships.
Founded in 2018 by IIT Bombay alumni Sumit Chhazed and Harsh Saruparia, is an online platform that helps buyers compare, test drive and buy two-wheelers online, as well as get access to financing.
OTO Capital, has partnerships with major two-wheeler brands—both combustion-engine and electric—such as Ola Electric, Hero Motocorp, Ather, and Royal Enfield, through their dealerships. Nearly 75,000 two-wheelers have been sold on the platform, so far, and Rs 550 crore disbursed in the form of loans, said the company.
“Our focus has always been on making two-wheeler ownership convenient, affordable, and accessible. We’re leading the charge in the two-wheeler EV sector with our digital-first strategy, and this investment will further fuel our initiatives in that direction,” said Chhazed, in a press statement.
OTO Capital operates in 10 cities
The Bengaluru-headquartered startup has established its operations in 10 cities including Hyderabad, Chennai, Pune, Delhi, Ahmedabad, and Indore. The startup has inked deals with several banks and NBFCs to deliver a variety of financing options and loans to customers. However, credit underwriting to insurance, maintenance, and eventual resale of the vehicle to its partners is handled entirely by OTO.
OTO Capital funding round was led by Japanese VC firm, GMO Venture Partners, as well as other investors including Turbostart and Indian cricketer KL Rahul. A few family offices and existing investors of OTO, including Prime Venture Partners, Matrix Partners, and 9Unicorns, also participated in the round.