Total amount raised
$20.3 Millions
Latest funding date
05/01/2024
Location
OTO Capital has successfully raised $10 million in funding, led by GMO Venture Partners and existing investors. The company offers a range of services including two-wheeler loans, online purchases, and a dedicated platform for electric two-wheelers.
Keep reading to explore the intricacies of OTO Capital's fundraising journey and the investors backing this innovative platform.
What Is OTO Capital?
OTO Capital, founded in 2018 by Harsh Saruparia and Sumit Chhazed, is a digital commerce and lending platform based in Mumbai, Maharashtra, India. The company specializes in providing affordable plans for purchasing motor bicycles and offers a range of services including two-wheeler loans, online purchases, and a dedicated platform for electric two-wheelers.
With a workforce of 251-500 employees, OTO Capital partners with various banks and NBFCs to provide financing options and offers full auto lifecycle management, including credit underwriting, insurance, maintenance, and eventual resale of the vehicle. The platform also facilitates two-wheeler loans with up to 35% lower EMIs than banks, fast loan approval, and flexible loan plans.
OTO Capital operates in over 22 cities across India, including major hubs like Delhi, Mumbai, Bangalore, and Hyderabad. The company provides features such as test rides at customer locations, home delivery of two-wheelers, and online loan approval within 30 minutes, making it a leading platform for discovering, researching, and buying bikes online.
How Much Funding Has OTO Capital Raised?
- Seed Round
- Amount Raised: ₹50M
- Date: December 10, 2018
- Lead Investors: Venture Catalysts
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company's initial operations and develop its platform.
- Seed Round
- Amount Raised: ₹100M
- Date: September 5, 2019
- Lead Investors: Prime Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's reach and enhance its service offerings.
- Debt Financing
- Amount Raised: $1.5M
- Date: September 1, 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational costs and expand financial services.
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: December 8, 2020
- Lead Investors: Venture Catalysts
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and increase market penetration.
- Series A
- Amount Raised: $6M
- Date: August 31, 2021
- Lead Investors: Z47
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance product offerings.
- Debt Financing
- Amount Raised: ₹60M
- Date: August 12, 2022
- Lead Investors: Stride Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and operational expenses.
- Series A
- Amount Raised: Not publicly disclosed
- Date: January 1, 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's market presence and product development.
- Venture Round
- Amount Raised: $10M
- Date: February 6, 2024
- Lead Investors: GMO Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand to over 30 cities, support the transition to electric vehicles, and strengthen existing partnerships.
- Debt Financing
- Amount Raised: Not publicly disclosed
- Date: May 6, 2024
- Lead Investors: BlackSoil
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operational costs and further expansion.
Total Amount Raised: $17.5M
Current Valuation: Not publicly disclosed
Key Investors
- GMO Venture Partners
- Details: GMO Venture Partners is a Japanese venture capital firm that led the $10 million funding round for OTO Capital. They focus on investing in technology startups and innovative business models.
- Investment Focus Areas: Technology startups, digital commerce, fintech.
- Notable Investments: Various tech startups globally.
- Prime Venture Partners
- Details: Prime Venture Partners is an early-stage venture capital firm based in India. They have been an existing investor in OTO Capital and participated in multiple funding rounds.
- Investment Focus Areas: Early-stage technology startups, fintech, SaaS, healthcare.
- Notable Investments: MyGate, Happay, and others.
- Matrix Partners
- Details: Matrix Partners is a global venture capital firm that has been an existing investor in OTO Capital. They focus on early and growth-stage companies.
- Investment Focus Areas: Technology, consumer sectors.
- Notable Investments: Ola, Practo, and others.
- 9Unicorns
- Details: 9Unicorns is an Indian startup accelerator and venture capital fund. They have participated in multiple funding rounds for OTO Capital as an existing investor.
- Investment Focus Areas: Early-stage startups across various sectors.
- Notable Investments: Multiple early-stage startups in India.
- Stride Ventures
- Details: Stride Ventures is an investment firm that participated in a debt financing round for OTO Capital. They focus on providing venture debt to startups.
- Investment Focus Areas: Venture debt, early-stage startups, growth-stage companies.
- Notable Investments: Not explicitly mentioned in the sources.
What's Next for OTO Capital?
OTO Capital is poised for significant growth as it plans to expand its operations to over 30 cities, leveraging the increasing demand for electric vehicles and digital-first solutions. With a robust business model that includes partnerships with major two-wheeler brands and financial institutions, the company is well-positioned to capitalize on the burgeoning market for flexible financing options.
Future fundraising opportunities appear promising, given the substantial commitments from banks and NBFCs, which have pledged over Rs 800 crore for the next 12 months. This financial backing indicates strong investor confidence and sets the stage for potential future rounds to support OTO's ambitious expansion and technological advancements.
However, OTO Capital may face challenges such as managing rapid geographic expansion, navigating regulatory changes, and competing with other digital lending platforms. Ensuring customer satisfaction and maintaining strong partnerships will be crucial as the company scales its operations and continues to innovate in the electric vehicle sector.
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