Automotive financing startup OTO Capital raises $6M in Series A round led by Matrix Partners India

• ByAyushi Ray     |    August 31, 2021

Automotive financing startup OTO Capital raises $6M in Series A round led by Matrix Partners India. The round also included participation from existing and new investors such as Prime Venture Partners, 9Unicorns, Better Capital, and marquee angel investors like Asish Mohapatra of OfBusiness, Ramakant Sharma of Livspace, Kunal Shah, K Ganesh, and Ashneer & Suhail of BharatPe. OTO said it will use the funding to scale its user base and to become the default app for two-wheeler buying and financing for 20 million Indians who purchase two-wheelers every year. OTO is currently present in five cities – Chennai, Bengaluru, Pune, Hyderabad, and Mysore. With this investment, the startup plans to launch its financing-cum-commerce platform in 15 new cities including, Delhi, Nashik, Indore, and Vijayawada.

Sumit Chhazed, Co-founder, OTO Capital, said,“We are re-imagining the two-wheeler buying and ownership experience for millions of Indians. Customers can research, schedule test drives at home, avail innovative & flexible financing options, and complete the purchase journey via our OTO platform. With electric two-wheelers added to the mix, OTO aims to become the default app for Indian buyers to cut through the noise and get a two-wheeler buying experience that has never existed before”. Started in 2018, the startup operates on a simple financing model for two-wheelers where the buyer pays an upfront amount like any other loan but gets up to 30 percent 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 financing options to its customers. It also provides full auto lifecycle management, from credit underwriting to insurance, maintenance, and eventual resale of the vehicle.

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