Finance start-up OTO Capital eyes 10 lakh customers in 5 years

OTO Capital, an alternative finance start-up that enables retail customers own two-wheelers on flexible terms, has drawn up plans to support 10 lakh consumers over five years by entering more cities, tying up with financial institutions and original equipment manufacturers.

“Ours is a flexible model, which enables prospective buyers to own a two-wheeler on subscription model either for 12 months or 24 months,” said Sumit Chhazed, co-founder, OTO Capital.

“The buyer has to pay refundable down payment of 10-30% and a monthly rental of ₹2,500 onwards. At the end of the tenure, they can take back their deposit or pay more to retain their vehicle or go in for upgradation,” he said.

“We have tied up with almost all the major brands and offer vehicles through OMIs (Ownership Monthly Instalments) which are 30% lower than bank or financial-institution EMIs. This model has gained popularity among youngsters during the COVID-19 period as they do not want to invest lumpsum or own bike.,” he said.

Currently, OTO is available in more than 110 dealers across Chennai, Bengaluru, Pune and Hyderabad. Last year, it financed 2,000 customers with a transaction value of ₹17 crore.

“We are in the business for more than a year. Our five-year plan is to help 10 lakh customers. Right now, we are adding more than 400 customers per month and plans to grow 10x this year. We are hopeful of achieving break-even when we start financing 30,000 vehicles per annum,” he said.