Two-Wheeler Digital Commerce & Finance Platform OTO Raises $10mn
New Delhi, 07th February 2024: OTO, India’s leading digital commerce and lending platform for two-wheelers, has recently raised funding of $10 million. This round was led by GMO Venture Partners and saw participation from Turbostart, Indian cricketer KL Rahul, and a few other family offices. Existing investors Prime Venture Partners, Matrix Partners, and 9Unicorns funds also participated in the round.
Co-founded by serial entrepreneurs Sumit Chhazed and Harsh, OTO is reshaping the purchasing, financing, and resale journey for the 20 million annual two-wheeler buyers in India. Responding to evolving consumer demands, OTO introduced its Super EMI plan, reducing two-wheeler EMIs 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 of OTO, expressing his excitement about this new phase in OTO’s growth, 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.”
The lead investor, Ryu Muramatsu from GMO Venture Partners shared his perspective on the investment. “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 2-wheelers—is remarkable. We are confident that by utilizing 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,” the investor remarked.
OTO has made remarkable strides in the industry, selling over 75,000 two-wheelers and disbursing loans exceeding ₹550 crore to date. The company’s impressive management of non-performing assets has made it a preferred partner for several banks and NBFCs, which have committed over INR 800 crores 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.