Mobility startup has raised $10 million in a funding round led by Japanese VC firm, GMO Venture Partners, as well as other investors such as Turbostart and Indian cricketer KL Rahul.
A few family offices and existing investors of OTO, including Prime Venture Partners, Matrix Partners, and 9Unicorns also participated in the round, the company said.
The two-wheeler digital commerce and lending startup will use the funds from the round to expand into 30 cities, and strengthen existing partnerships, it said.
Founded in 2018 by IIT Bombay alumni Sumit Chhazed and Harsh Saruparia, OTO is an online platform that helps buyers compare, test drive and buy two-wheelers online, as well as get access to financing.
It has partnerships with major two-wheeler brands–combustion-engine and electric–such as Ola Electric, Hero Motocorp, Ather, Royal Enfield etc through their dealerships. Nearly 75,000 two-wheelers have been sold on the platform, so far, and Rs 550 crore disbursed in the form of loans.
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“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,” said Chhazed in a press note.
The Bengaluru-headquartered startup has services across 10 cities including Hyderabad, Chennai, Pune, Delhi, Ahmedabad, and Indore, among others.
OTO has tied up with several banks and NBFCs to provide loans to customers to offer a variety of financing options. However, credit underwriting to insurance, maintenance and eventual resale of the vehicle to its partners is handled entirely by OTO.
Edited by Megha Reddy
