The company wants to use the capital to expand both its marketplace business for the sale and acquisition of secondhand two-wheelers as well as its operations in rural India.
The two-wheeler finance start-up Bike Bazaar announced that Women’s World Banking Asset Management (WAM), who previously invested alongside Elevar Equity and Faering Capital, had led a Rs 170 crore equity funding round.
Elevar, who made the first investment in Bike Bazaar, still owns the majority of the company.
The company wants to use the capital to expand both its marketplace business for the sale and acquisition of secondhand two-wheelers as well as its operations in rural India.
Bike Bazaar was first established in 2017 as a used two-wheeler financing company by former Bajaj Auto NSE 0.88% executive Srinivas Kantheti and former Bajaj Finance NSE -0.74% executive Karunakaran Vadakkepat. Since then, Bike Bazaar has expanded to include several businesses in the two-wheeler market, including new two-wheeler financing, a marketplace for pre-owned two-wheelers, and a new electric vehicle financing business According to officials, it will also increase servicing.
Before establishing a company, the founders worked for decades in the automotive and related financing industries.
According to Vadakkepat, “Our objective is to be present throughout the two-entire wheeler’s lifecycle.” “For instance, a person intending to purchase a two-wheeler would want to trade in his current two-wheeler. He can use our reselling services as well as our financing services. That old car ought to be available for sale on our marketplace or through other pre-owned sales channels. RTO transfers, insurance, and other value-added services are among the services we wish to provide. Over time, we also intend to add new services. In reality, we want every company to depend on every other company so we can leverage costs.
Despite a slowdown in investment across the board for startups, ET reported on August 19 that traditional venture capital investors are shifting their attention to the EV startup market.
According to Vadakkepat, the business is currently figuring out the best way to set itself up to accept funds earmarked particularly for the EV industry.
In addition to operating in over 140 cities across India with more than 1,000 touchpoints, Bike Bazaar asserts to have a major presence in smaller villages. As of July 2022, its financing division had transacted business for a total gross transaction value of more than Rs 1,500 crore and given more than 3,000,002 loans for two-wheelers. The company has successfully raised 400 crore rupees ($6 billion) in equity capital since its founding.
According to Vadakkepat, ET’s client base includes people who work in trades like plumbing, carpentry, and housekeeping; yet, these individuals lack the necessary financial literacy to make use of credit and other services. To ensure loan repayment, Bike Bazaar has set up numerous cash collection sites.
Through partnerships with numerous banks and NBFCs, Bike Bazaar is able to provide loans. According to Vadakkepat, the startup will typically have a 20% exposure to these loans.
According to Christina Juhasz, a chief investment officer of Women’s World Banking Asset Management, “Women’s World Banking is dedicated to women’s economic empowerment and WAM is investing in Bike Bazaar’s demonstrated potential to provide accessible and affordable two-wheeler finance to financially underserved women in India, simultaneously enabling their mobility and developing their asset bases and credit profiles.” The Federal Ministry for Economic Cooperation and Development of Germany and the European Union provide funding for WAM.
