OTO Capital, a two-wheeler buying and financing company has announced that it has achieved Rs 100 crore loan disbursement of vehicles through its digital commerce platform in 33 months.
Founded in 2018, the start-up has facilitated the sale and financing of over 11,000 two-wheelers, which includes more than 2,700 electric vehicles.
Sumit Chhazed, co-founder, OTO said, “With growing advances in digitisation across sectors, there has been a significant demand in the ease of financing and buying vehicles online. We, at OTO, have witnessed a growth of 2.5x in our books serving more than 6,200 happy customers from 2,400 customers being served in the last fiscal through our digital commerce platform. We are already serving more than 2,500 a month which has scaled 8x YoY. Not only have we raised capital from various investors to expand our business operations to new regions, but we have also built significant partnerships with established companies to grow our financing capabilities and supply chain model. This strategic approach has expedited the exponential growth of the brand. The doorstep delivery of vehicles with easy financing with digital paperwork and utmost security has won our customers’ faith in our company. We have aggressive plans to venture into new cities and strike new strategic partnerships in the near future.”
Hariwansh Kumawat, CFO, OTO, said, “Over the last 2 years, OTO has been growing in a steady way keeping the portfolio quality best in the industry. From doing Rs 1 crore per month, we have grown to Rs 15 crore per month and the vision from here is bigger and stronger. In the next 12 months, we are confident of disbursing Rs 600 crore. While talking about the growth, the credit quality should never deteriorate and that is the mantra being followed across the board. The retail book, by virtue of its nature comes with some baggage and the credit losses are bound to happen. However, we are successful in building a robust portfolio. By showing a steady growth and uncompromised credit quality, we became one of the most preferred partners of many of the financial institutions. We have been able to stay up to our commitments to our lending partners and that is why we are adding 1-2 partners every quarter. Today we have secured a pending line of Rs 500 crore with our current lending partners, and we are looking to partner with some of the bigger lenders as well who have a bigger appetite to bring down the cost and to have long-term visibility towards this space.”
OTO’s financing model for two-wheelers makes the buyer pays an upfront amount like any other finance options but is said to get up to 35 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 the most hassle-free financing options to its customers. It also provides full auto lifecycle management, from credit underwriting to insurance, maintenance, and eventual resale of the vehicle.
The fintech startup is making strides to bolster its business growth and intends to sell 75,000 two wheelers and achieve Rs 600 crore of annual disbursement by the next financial year.