Mobility Startup OTO Capital Raises $10 Million in Funding Round Led by GMO Venture Partners

• ByStartupStory     |    February 6, 2024

Mobility startup OTO Capital has secured $10 million in a funding round led by Japanese VC firm GMO Venture Partners, along with investments from Turbostart, Indian cricketer KL Rahul, and other backers, including family offices and existing investors such as Prime Venture Partners, Matrix Partners, and 9Unicorns.

Founded in 2018 by IIT Bombay alumni Sumit Chhazed and Harsh Saruparia, OTO is an online platform that enables buyers to compare, test drive, and purchase two-wheelers online, as well as access financing. The digital commerce and lending startup plans to utilize the latest funding to expand its presence to 30 cities and strengthen its existing partnerships.

OTO has established partnerships with major two-wheeler brands, including both combustion-engine and electric vehicles, such as Ola Electric, Hero Motocorp, Ather, and Royal Enfield, through their dealerships. The company stated that it has facilitated the sale of nearly 75,000 two-wheelers on its platform and disbursed Rs 550 crore in loans.

Sumit Chhazed, co-founder of OTO, emphasized the company’s focus on making two-wheeler ownership convenient, affordable, and accessible. He highlighted OTO’s leadership in the two-wheeler electric vehicle sector with a digital-first strategy and expressed that the investment will further support their initiatives in this direction.

Headquartered in Bengaluru, OTO operates in 10 cities, including Hyderabad, Chennai, Pune, Delhi, Ahmedabad, and Indore. The startup has partnered with several banks and non-banking financial companies (NBFCs) to offer a range of financing options and loans to customers. OTO manages credit underwriting, insurance, maintenance, and eventual resale of the vehicle to its partners.

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