OTO Partners With Northern Arc Capital To Enhance Two-Wheeler Financing For Their Customers

OTO -- a digital commerce platform and two-wheeler financier has announced its partnership with Northern Arc Capital, a non-banking finance company (NBFC), to cater to a large segment of underserved two-wheeler customers.

Through this partnership, Northern Arc Capital will be able to access OTO’s large retail base of two-wheeler customers. OTO’s consistent focus on technology and the seamless application process will further help Northern Arc Capital to enhance its capabilities and build the two-wheeler retail portfolio. The financing option on OTO’s platform through Northern Arc Capital will be available pan India.  Furthermore, OTO aims to disburse more than 800 crore in CY 23 through its lending partners and expects a contribution of about 20 per cent of the target disbursement from Northern Arc Capital.

Commenting on the partnership, Sumit Chhazed, Co-Founder and CEO of OTO said “Financing plays a major role in the choice of individuals before buying a two-wheeler. While the pandemic led to a setback in the overall sale of two-wheelers, a statista report on Indian loans indicates that the segment is expected to grow at a compounded rate of 11 per cent or more annually with the ease of covid restrictions.”

“At OTO, we aim to understand the trends and growing needs of our two-wheeler customers, and this partnership with Northern Arc Capital will serve as a way to cater to their evolving needs with the help of digitalisation and new business models,” Chhazed added.

Meanwhile, Hariwansh Kumawat, CFO, OTO said, “We are very excited to start this journey with Northern Arc Capital. Through this partnership, we will be able to cater to a larger segment of society in terms of two-wheeler financing needs, thereby enhancing our reach. It will also improve OTO’s overall loan disbursement capabilities and allow us to better finance our customers which would bring them one step closer to owning their dream two-wheeler.”

About OTO

OTO was founded in 2018 by IIT-Mumbai alumnus Sumit Chhazed and Harsh Saruparia to present a 10X simpler, faster and more convenient way for 20 Mn Indians to buy and finance their two-wheelers every year.

The company is headquartered in Bengaluru, with its services also available across 10 cities including Hyderabad, Chennai, Pune, Delhi, Ahmedabad, Indore, etc. OTO has created a dramatically simpler leasing-like financing model for two-wheeler purchases where buyers pay a similar upfront payment like any other loan, pay up to 30% lower EMIs and have the option to own the two-wheeler at the tenure end OR sell it back to OTO. Around this core of “10X better” financing model & experience, OTO has added an app-based layer to help two-wheeler buyers to find all the top options in one place, schedule a home test drive at their convenience and then choose to finance with OTO and continue to manage it - all in one place. With its over 500 dealer partners, OTO has financed more than thirty thousand two-wheeler vehicles.