Two-wheeler EV finance platform OTO raised $10 M from GMO Venture Partners

GMO Venture Partners led the $10 million fundraising effort for the two-wheeler electric vehicle finance platform OTO, which also included Turbostart, Indian cricket player KL Rahul, and a few other family offices. The round included participation from current investors Prime Venture Partners, Matrix Partners, and 9Unicorns funds.

OTO, which was co-founded by Harsh and Sumit Chhazed, deals with the acquisition, financing, and resale of two-wheelers for Indian consumers. With the launch of its Super EMI plan, OTO allowed customers to keep or upgrade their vehicles at the end of the term, thereby reducing two-wheeler EMIs by up to 30%.

The discovery and purchase process is greatly streamlined by its app, which offers free home trials and the lowest price guarantee.

The additional funds will help OTO reach over 30 cities, facilitate the switch to electric vehicles, and strengthen current alliances.

As of now, the startup says it has disbursed loans totaling more than Rs 550 crore and sold over 75,000 two-wheelers. The company claims that a number of banks and NBFCs have chosen to work with it because of its handling of non-performing assets; these parties have committed more than Rs 800 crore for the next 12 months.

Through their dealership networks, OTO maintains partnerships with well-known two-wheeler brands, including Ola, Hero Motocorp, Royal Enfield, Ather, and Suzuki.

Its competitors include Greaves Finance, Vidyut, Muffin, Revfin, and Finayo.