Finance startup OTO Capital bags $6Mn in a Series A funding round

By Mateen Dalal

Automotive financing startup, OTO Capital has raised $6 million in a Series A funding round led by Matrix Partners India.

The round included some existing and new investors like Better Capital, 9Unicorns, Prime Venture Partners and marquee angel investors like Ramakant Sharma of Livspace, Asish Mohapatra of OfBusiness, K Ganesh, Kunal Shah, and Ashneer & Suhail of BharatPe.

According to OTO, the funding will be used to expand its user base and help it become a default app for purchasing and financing two-wheelers for 20 million people in India who buy two-wheelers every year.

Currently, OTO is in 5 cities – Pune, Mysore, Hyderabad, Chennai, and Bengaluru. The startup plans to introduce its financing-cum-commerce platform in 15 more cities with this investment, including Delhi, Indore, Nashik, and Vijayawada.

Furthermore, OTO will be employing and doubling its staff size by the end of March 2022 and plans to recruit people across domains like technology, product, marketing, and operations.

Sumit Chhazed, Co-founder, OTO Capital, said – The firm is reinventing the two-wheeler buying and owning experience for millions of Indians. Customers can use the OTO platform to conduct research, organize test drives at their homes, obtain creative and flexible financing solutions, and complete the purchase process.

With the addition of electric two-wheelers to the mix, OTO intends to become the go-to app for Indian customers looking to cut through the clutter and receive a two-wheeler shopping experience like no other.

OTO has connections with all major brands through their dealerships, including Hero Motocorp, Honda, Suzuki, Hero Electric, and others.

OTO said that despite the Covid-19 pandemic, the company had grown 4X last year while maintaining less than 1% NPAs. The firm also revealed that more than 30% of the company's transactions were obtained and performed digitally.

Source Credit - https://yourstory.com/2021/08/funding-two-wheeler-leasing-oto-capital-martrix-partners/amp