OTO achieves Rs 100-cr disbursal for 11k vehicles via its commerce platform

OTO, founded in 2018 by IIT-Mumbai alumnus Sumit Chhazed and Harsh Saruparia, has facilitated in sale and financing of over 11, 000 vehicles, of which approximately 2, 700 vehicles are electric

(L-R) OTO founders Sumit Chhazed and Harsh Saruparia

2 min read Last Updated : Mar 01 2022 | 3:37 PM IST

Two-wheeler buying and financing startup, OTO, said that it has achieved a milestone by financing vehicles worth Rs 100 crore through its digital commerce platform in the last thirty-three months.

OTO, founded in 2018 by IIT-Mumbai alumnus Sumit Chhazed and Harsh Saruparia, has facilitated in sale and financing of over 11, 000 vehicles, of which approximately 2, 700 vehicles are electric. The startup generated significant portion of its sales from its headquarters in Bengaluru.

The startup operates on an innovative financing model for 2-wheelers where the buyer pays an upfront amount like any other finance options but gets up to 35% 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.

“With growing advances in digitization 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 6,200-plus happy customers from 2,400 customers being served in the last fiscal through our digital commerce platform. We are already serving 2,500-plus a month which has scaled 8X YoY," said Sumit Chhazed, co-founder of OTO.

“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," said Hariwansh Kumawat, CFO, OTO.

The startup aims 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. The company also aims to intensify its presence in India and expand its workforce.