OTO Capital Rides High: Secures $10 Million Investment for Two-Wheeler Revolution
OTO Capital Rides High: Secures $10 Million Investment for Two-Wheeler Revolution OTO Capital, a leading player in two-wheeler-focused lending, has recently announced a significant milestone with the successful closure of a $10 million funding round. Spearheaded by Japan’s GMO Venture Partners, the funding round also witnessed participation from a consortium of esteemed investors, including Turbostart and Indian cricketer KL Rahul, alongside existing backers like Prime Venture Partners, Matrix Partners, and 9Unicorns.
Aim and Allocation of Funds:
The infusion of capital is earmarked to propel OTO’s ambitious expansion plans. Sumit Chhazed, the CEO, and co-founder of OTO, outlined the company’s vision to scale up operations from 10 cities to 25 within the next 18 months. Additionally, the funding will facilitate an increase in vehicle bookings from 5,000 to 15,000 per month, alongside a threefold rise in annualized disbursals to Rs 1,500 crore. This strategic allocation underscores OTO’s commitment to enhancing its technological infrastructure, with plans underway to file for a non-banking financial company (NBFC) license in the near future.
Partnerships and Market Presence:
OTO has cemented partnerships with leading two-wheeler manufacturers, including industry giants like Ola Electric, Hero Motocorp, Royal Enfield, Ather, and Suzuki. Leveraging these collaborations, OTO has facilitated over 75,000 two-wheeler transactions, with loans exceeding Rs 550 crore disbursed to date. Notably, a significant portion of OTO’s business stems from the rapidly growing electric vehicle (EV) segment, reflecting the company’s forward-looking approach in embracing emerging trends within the automotive industry.
Digital-first Strategy:
Founded in 2018 by Sumit Chhazed and Harsh Saruparia, both alumni of IIT Bombay, OTO has carved a niche for itself by offering a seamless online platform that simplifies the two-wheeler purchasing process. The company’s digital-first strategy, complemented by innovative financing solutions such as the Super EMI plan, has garnered widespread acclaim for its ability to reduce EMIs by up to 30% while affording customers the flexibility to upgrade or retain their vehicles at the end of the term.
Future Prospects and Vision:
As the automotive landscape continues to witness a shift towards electrification, OTO remains at the forefront of this transformative journey. Sumit Chhazed expressed his confidence in OTO’s ability to lead the charge in the two-wheeler EV sector, fueled by a commitment to affordability, accessibility, and innovation. With the support of its investors, including GMO Venture Partners, OTO aims to consolidate its position as a trailblazer in the global two-wheeler industry, leveraging cutting-edge technologies to redefine the customer experience.
Amidst the backdrop of the COVID-19 pandemic, OTO has emerged as a beacon of resilience and innovation in the mobility space. By providing digital convenience, flexible financing options, and a relentless focus on customer satisfaction, OTO has positioned itself for sustained growth and success. As it embarks on the next phase of its journey, OTO remains poised to reshape the landscape of two-wheeler ownership, setting new benchmarks for excellence and driving positive change within the automotive ecosystem.
