Bike Bazaar, an e-commerce platform and provider of financing for two-wheelers, has raised debt from MAS Financial worth around Rs 25 crore, or $3 million. The Pune-based company is in its first debt round for 2024.
The regulatory filing obtained from the Registrar of Companies indicates that the Bike Bazaar board has approved a special resolution to issue 2,500 non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 each in order to raise Rs 25 crore.
The debt investment has a 30-month duration and an annual interest rate of 10.70%, per the filed documents.
The $30 million funding round led by Women’s World Banking Asset Management (WAM), which concluded in February of last year, is part of the approximately $80 million that Bike Bazaar has raised to date.
The largest external stakeholder, according to the media, is Elevar Equity, with 25%, followed by Faering Capital, with 22%. Together, co-founders Srinivas Kantheti and Karunakaran Vadakkepa own 12.47% of the business.
Bike Bazaar, a company founded in 2017, offers financing options to consumers wishing to purchase a motorcycle. According to its website, the company has financed over 300,000 vehicles to date. The platform also offers loans for used and electric two-wheelers.
In addition to financing, Bike Bazaar offers a two-wheeler marketplace for purchase and sale. The business intends to grow this market and increase its footprint in the rural market with the help of the new funding.
Although Bike Bazaar has not yet submitted its financial statement for FY24, its annual financial statement filed with the RoC shows that its income from operations increased by 20% to Rs 180 crore in FY23. The business was able to reduce its losses from Rs 55 crore to Rs 43 crore in FY23.
Startups like Cars24, Droom, CredR, and others are competitors of Bike Bazaar.
