OTO Capital Secures $10 Million Investment For Expansion Into EV Sector 2024

OTO Capital Secures $10 Million Investment for Expansion into EV Sector OTO Capital, a prominent player in the two-wheeler-focused lending space, has recently closed a significant $10 million funding round led by Japan’s GMO Venture Partners. This investment, along with participation from existing investors and notable personalities like Indian cricketer KL Rahul, underscores the company’s ambitious plans for expansion and innovation in India’s rapidly evolving mobility sector.

Funding Details and Strategic Vision:

The funding round, conducted at an undisclosed valuation, aims to fuel OTO’s aggressive expansion strategy. CEO and Co-founder Sumit Chhazed outlined the company’s goals, which include scaling operations from 10 cities to 25 within the next 18 months, tripling vehicle bookings facilitated per month, and ramping up annual disbursals to Rs 1,500 crore. Additionally, the funds will be channeled into enhancing the firm’s technological infrastructure and potentially obtaining a non-banking financial company (NBFC) license, reflecting OTO’s commitment to staying ahead in an increasingly digitized automotive landscape.

Focus on Electric Vehicles (EVs):

In anticipation of the continued electrification of the automotive space, OTO is strategically positioned to capitalize on the growing demand for electric two-wheelers (EVs). Notably, a third of the company’s business already stems from the sale of electric vehicles, highlighting its proactive stance in embracing emerging trends. Chhazed emphasized the importance of technological advancements in ensuring that OTO remains at the forefront of the evolving mobility landscape.

Partnerships and Market Presence:

OTO boasts partnerships with leading two-wheeler brands, including Ola Electric, Hero Motocorp, Royal Enfield, Ather, and Suzuki, leveraging their dealership networks to reach a wider customer base. With services spanning across 10 cities and plans to expand into 30 cities, OTO is well-positioned to cater to the needs of approximately 20 million two-wheeler buyers annually in India. The company’s innovative offerings, such as the Super EMI plan, aim to make two-wheeler ownership more affordable and accessible, further enhancing its appeal to customers.

Investor Confidence and Future Prospects:

The investment from GMO Venture Partners, along with the backing of existing investors, reflects a vote of confidence in OTO’s business model and growth trajectory. Ryu Muramatsu from GMO Venture Partners expressed optimism about OTO’s potential to redefine the global two-wheeler industry, leveraging AI and innovative financing solutions to create significant value for customers and investors alike. With a track record of disbursing loans exceeding Rs 550 crore and facilitating over 75,000 two-wheeler transactions, OTO is poised to continue its upward trajectory in the Indian mobility landscape.

As OTO Capital embarks on this transformative journey fueled by substantial investment, it underscores the company’s commitment to reshaping the automotive financing landscape. With a focus on technological innovation, strategic partnerships, and customer-centric solutions, OTO is poised to solidify its position as a key player in the burgeoning market of two-wheeler financing. As the company expands its footprint and embraces the electrification trend, stakeholders eagerly anticipate the realization of OTO’s vision for a more accessible and sustainable future in mobility.