Two-wheeler buying and financing start-up OTO on Tuesday announced that it raised $6 million in a Series A investment round led by Matrix Partners India.
This also includes participation from existing and new investors such as Prime Venture Partners, 9Unicorns, and Better Capital and marquee angel investors like Asish Mohapatra of OfBusiness, Ramakant Sharma of Livspace, Kunal Shah, K Ganesh, and Ashneer and Suhail of BharatPe.
OTO will use this funding to scale its user base and become the default app for two-wheeler buying and financing for 20 million Indians who purchase two-wheelers every year.
The company is currently present in Chennai, Bengaluru, Pune, Hyderabad, and Mysore. With this investment, it plans to launch its financing-cum-commerce platform in 15 new cities including, Delhi, Nashik, Indore and Vijaywada.
To drive this growth, the company will double its team size by March 2022 and plans to hire aggressively across verticals, especially technology, product, marketing, and operations.
Sumit Chhazed, Co-founder, OTO Capital, said, “We are re-imagining the 2-wheeler buying and ownership experience for millions of Indians. Customers can research, schedule test drives at home, avail innovative and flexible financing options, and complete the purchase journey via our OTO platform.”
“With electric 2-wheelers added to the mix, OTO aims to become the default app for Indian buyers to cut through the noise and get a 2-wheeler buying experience that has never existed before,” he added.
Started in 2018, OTO operates on a simple financing model for 2-wheelers where the buyer pays an upfront amount like any other loan but gets up to 30% 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 hassle-free financing options to its customers. It also provides full auto lifecycle management, from credit underwriting to insurance, maintenance, and eventual vehicle resale.