OTO, the two-wheeler buying and financing startup has strengthened its market position in the vehicle financing industry by financing Rs 100 crore worth of vehicles through its digital commerce platform in the last 33 months. OTO has acquired a significant market share in the auto financing industry within a short span.
Since its inception in 2018, the start-up has facilitated the sale and financing of over 11, 000 vehicles, amongst which approximately 2, 700 vehicles are electric with more significant sales generated from its headquarters in Bengaluru.
Sumit Chhazed, Co-founder, OTO, said, “With growing advances in digitization across sectors, there has been a significant demand in the ease of financing and buying vehicles online. We, at OTO, have witnessed a growth of 2.5x in our books serving 6200+ happy customers from 2,400 customers being served in the last fiscal through our digital commerce platform. We are already serving 2,500 plus a month which has scaled 8X YoY.”
The fintech startup is making strides to bolster its business growth and intends to sell 75K two-wheelers and achieve 600 Crores of annual disbursement by the next financial year. The company also aims to intensify its presence in India and expand its workforce.
Chhazed said: “Not only have we raised capital from various investors to expand our business operations to new regions, but we have also built significant partnerships with established companies to grow our financing capabilities and supply chain model. This strategic approach has expedited the exponential growth of the brand. The doorstep delivery of vehicles with easy financing with digital paperwork and utmost security has won our customers’ faith in our company. We have aggressive plans to venture into new cities and strike new strategic partnerships in the near future.”
Starting in 2018, OTO operates on an innovative financing model for 2-wheelers where the buyer pays an upfront amount like any other finance option but gets up to 35% lower EMIs with an option to retain, return or upgrade at the end of the tenure. The platform works in partnership with various banks and NBFCs to provide the most hassle-free financing options to its customers. It also provides full auto lifecycle management, from credit underwriting to insurance, maintenance, and eventual resale of the vehicle.
Hariwansh Kumawat, CFO, OTO, said, “Over the last 2 years, OTO has been growing in a steady way keeping the portfolio quality best in the industry. From doing Rs 1 crore per month, we have grown to Rs 15 crore per month and the vision from here is bigger and stronger. In the next 12 months, we are confident of disbursing Rs 600 crore. While talking about the growth, the credit quality should never deteriorate and that is the mantra being followed across the board. The retail book, by virtue of its nature, comes with some baggage and the credit losses are bound to happen. However, we are successful in building a robust portfolio.”