Online two-wheeler marketplace Bike Bazaar has raised $52.8 million (INR 420 crore) in its ongoing Series D funding round, which is a mix of equity and debt.
Of this, $21.4 million (INR 170 crore) was raised as equity funding from Women’s World Banking Asset Management (WAM) and the remaining $31.4 million (INR 250 crore) as debt funding from several banks and financial institutions over the last six months.
Bike Bazaar plans to use the funds to penetrate deeper into the rural towns of India and also expand its new vertical of selling and buying used two-wheelers.
Founded in 2017 by Srinivas Kantheti and Karunakaran Vadakkepat, WheelEMI is the parent company of online two-wheeler marketplace Bike Bazaar. Its offerings include buying and selling used two-wheelers and financing services for new and used two-wheelers.
Bike Bazaar claims to have more than 1,000 touch points and also has a presence in more than 140 Indian cities. It further claims to have disbursed more than 3 Lakh two-wheeler loans to date and has a gross transaction value (GTV) of over 1,500 Cr.
Bike Bazaar said it has disbursed over 1 Lakh loans worth INR 600 crore in FY 2022-2023 and currently manages a loan book of over INR 700 crore.
It competes with companies like CWC, AutoMony, OTO Capital and Berar Finance in the financing segment.
Srinivas Kantheti, MD of Bike Bazaar, said, “Today we have significant momentum to show with our unique direct collection model reaching over 1,000 touch points; we also have one of the best GNPA scores in the industry and are on the rise. The recent fundraising is aimed at consolidating our position as a lifecycle services player in the two-wheeler segment.”
Christina Juhasz, CIO of WAM, said, “WAM invests in Bike Bazaar’s proven potential to provide accessible and affordable two-wheeler financing to financially disadvantaged women in India. We are inspired by Bike Bazaar’s clear focus on increasing the number of women riders, especially in tier 2 and 3 cities and towns across India.”
Bike Bazaar is in talks with investors to raise an additional INR 80 Cr in equity funding before closing the Series D round. Additionally, the startup is also in talks with electric vehicle-focused funds to raise INR 200-250 crore for financing, leasing and services.
According to reports, India’s fintech sector is expected to reach $1.3 trillion by 2025. Of this, lendingtech and insurtech, which are sub-sectors of fintech, have a market opportunity of $955 million and are likely to grow at a CAGR of 32% and 57% from 2022-25.