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OTO Secures $10 Million From GMO, Redefining Two-Wheeler Ownership in India

By Nikhilkumar Vn
/
21 Feb 2024
blog
OTO Secures $10 Million From GMO, Redefining Two-Wheeler Ownership in India

OTO Capital, the innovative startup reshaping the landscape of two-wheeler ownership in India, has successfully raised $10 million in a recent funding round led by GMO Venture Partners. The round also saw participation from existing investors, including Turbostart, Indian cricketer KL Rahul, Prime Venture Partners, Matrix Partners, 9Unicorns funds, and various family offices.

OTO Capital secures funding from GMO Venture Partners

Founded by Sumit Chhazed and Harsh, OTO Capital aims to redefine the purchasing, financing, and resale journey for the approximately 20 million two-wheeler buyers in India annually. The startup introduces the groundbreaking Super EMI plan, reducing EMIs on two-wheelers by up to 30% and providing customers with the flexibility to upgrade or retain their vehicles at the end of the term.


OTO Capital's digital platform, complemented by AI-driven financing, offers free home trials and the lowest price guarantee, simplifying the discovery and purchasing process for consumers. The company has experienced remarkable growth during the COVID-19 pandemic, providing digital convenience and a range of affordable, flexible financing options to motorcycle enthusiasts.


The freshly infused funds will strategically contribute to OTO's expansion, with plans to establish a presence in over 30 cities, support the transition to electric vehicles, and fortify existing partnerships. Sumit Chhazed, Co-Founder and CEO of OTO stated, "This funding marks a pivotal moment for us at OTO. Our focus has always been on making two-wheeler ownership convenient, affordable, and accessible."


Ryu Muramatsu, lead investor from GMO Venture Partners, expressed confidence in OTO's innovative approach and its potential to redefine the global two-wheeler industry. "We are confident that by utilizing AI/ML in their services, OTO can redefine the global two-wheeler industry, thereby creating significant value for both customers and investors."


To date, OTO has disbursed loans exceeding Rs 550 crore, translating to over 75,000 two-wheelers transacted. The company's effective 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. OTO has also successfully collaborated with major two-wheeler brands like Ola, Hero Motocorp, Royal Enfield, Ather, and Suzuki through their dealership networks.


OTO Capital is a pioneering startup focused on transforming the two-wheeler ownership experience in India. Co-founded by Sumit Chhazed and Harsh, the company introduces innovative financing solutions and a digital platform to streamline the purchase, financing, and resale process for millions of two-wheeler buyers annually. With a commitment to affordability, convenience, and accessibility, OTO Capital is at the forefront of driving positive change in the Indian two-wheeler market.