OTO, one of India’s leading digital commerce and lending platforms for two-wheelers has raised $10 million (Rs 83 crore) in funding led by GMO Venture Partners and existing investors including Turbostart, Indian cricketer KL Rahul, Prime Venture Partners, Matrix Partners, 9Unicorns funds and a few other family offices also participated in the round.
The start-up is Co-Founded by serial entrepreneurs Sumit Chhazed and Harsh aims to reshape the purchasing, financing, and resale journey for around 20 million two-wheeler buyers annually in India. OTO has introduced Super EMI plan, which it says reduces EMIs on two-wheelers by up to 30% while granting customers the flexibility to upgrade or retain their vehicles at the end of the term. Complemented by digital financing, OTO’s app offers free home trials and the lowest price guarantee, streamlining the discovery and purchasing process tenfold.
Amidst the COVID-19 pandemic, OTO has experienced remarkable growth by providing digital convenience and a spectrum of affordable, flexible financing options to motorcycle enthusiasts. The allocated funds will strategically expand OTO’s presence to over 30 cities, support the transition to electric vehicles, and fortify existing partnerships.
Sumit Chhazed, Co-Founder and CEO, OTO said, “This funding marks a pivotal moment for us at OTO. 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.”
Ryu Muramatsu (lead investor) from GMO Venture Partners said, “It’s a pleasure to collaborate with Sumit and Harsh at OTO. Their innovative approach to offering accessible purchase options and affordable financing in India—one of the largest markets for EV two-wheelers—is remarkable. We are confident that by utilising AI/LLM in their services, OTO has the ability to redefine the global two-wheeler industry, thereby creating significant value for both customers and investors.”
Till date, OTO has disbursed loans exceeding Rs 550 crore, which translates to over 75,000 two-wheelers transacted. The company says its impressive management of non-performing assets has made it a preferred partner for several banks and NBFCs, which have committed over Rs 800 crore for the upcoming 12 months. Furthermore, OTO has forged successful partnerships with major two-wheeler brands like Ola, Hero Motocorp, Royal Enfield, Ather, and Suzuki through their dealership networks.
