OTO, a prominent digital commerce and lending platform for two-wheelers in India, has secured $10 million (Rs 83 crore) in funding. The investment round, led by GMO Venture Partners, saw participation from existing investors like Turbostart, Indian cricketer KL Rahul, Prime Venture Partners, Matrix Partners, 9Unicorns funds, and other family offices.
Co-founded by serial entrepreneurs Sumit Chhazed and Harsh, OTO aims to revolutionize the buying, financing, and resale experience for approximately 20 million annual two-wheeler buyers in India. The startup introduces the Super EMI plan, reducing two-wheeler EMIs by up to 30% and providing flexibility for customers to upgrade or retain their vehicles.
OTO’s app, complemented by digital financing, offers free home trials and the lowest price guarantee, streamlining the discovery and purchase process.
Despite the challenges posed by the COVID-19 pandemic, OTO has witnessed significant growth by delivering digital convenience and affordable financing options to motorcycle enthusiasts. The funds will be strategically used to expand OTO’s presence in more than 30 cities, facilitate the transition to electric vehicles, and strengthen existing partnerships.
Sumit Chhazed, Co-Founder and CEO of OTO expressed the funding as a pivotal moment for the company, emphasizing their commitment to making two-wheeler ownership convenient and accessible.
Ryu Muramatsu, lead investor from GMO Venture Partners, praised OTO’s innovative approach in providing accessible purchase options and affordable financing in India’s substantial market for electric two-wheelers. He expressed confidence in OTO’s ability to redefine the global two-wheeler industry through the utilization of AI/ML in their services, creating significant value for customers and investors.
