Two-wheeler financing startup OTO Capital raises $6 million from Matrix, others

OTO Capital, a startup that helps customers buy or lease two-wheelers, has raised $6 million in a Series A investment round led by Matrix Partners India.The round also involved existing and new investors such as Prime Venture Partners, 9Unicorns and Better Capital, and angel investors such as Asish Mohapatra of OfBusiness, Ramakant Sharma of Livspace, Kunal Shah of Cred, K Ganesh of BigBasket, and Ashneer Grover and Suhail Sameer of BharatPe.The company will use the funds to increase its user base, hire talent, and scale up its tech platform. “More than 30% of the company’s transactions were sourced and completed digitally,” it said in a press statement.Using OTO’s platform, a buyer pays some money upfront, like with any other loan, but gets up to 30% lower monthly installments and the option to retain, return or upgrade the vehicle when the lease ends. It also provides full auto lifecycle management, from credit underwriting to insurance, maintenance, and eventual resale of the vehicle.“We are re-imagining the two-wheeler buying and ownership experience for millions of Indians. Customers can research, schedule test drives at home, avail of innovative and flexible financing options, and complete the purchase via our platform,” said Sumit Chhazed, cofounder, OTO Capital “In the world’s largest two-wheeler market, the consumers’ preferences are changing. OTO caters to this new consumer with a new model of buying, financing and ownership,” said Vikram Vaidyanathan, managing director, Matrix India.