Two-Wheeler Financing Startup Bike Bazaar Raises Capital

Startup Bike Bazaar which provides financing for two-wheelers announced that it had raised Rs 170 crore in equity capital, led by Women’s World Banking Asset Management (WAM), joining previous equity backers Elevar Equity and Faering Capital.

The company plans to utilize the money to expand both its marketplace business—which allows people to buy and sell secondhand two-wheelers and its operations in rural India.

Bike Bazaar, which was initially founded in 2017 as a used two-wheeler financing company by former Bajaj Auto executive Srinivas Kantheti and former Bajaj Finance executive Karunakaran Vadakkepat, has since expanded to include a number of 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, in addition to adding servicing, officials said.

Before launching the company, the founders worked for decades in the automotive and related financing industries.

Vadakkepat stated, “Our aim is to be present throughout the two-wheeler’s whole lifecycle. For instance, a person intending to purchase a two-wheeler would desire to trade in his current two-wheeler. He may use both our finance and resale services. We should be able to sell that used car through our marketplace or other pre-owned sales channels. We aim to provide value-added services like RTO transfers, insurance, etc., and eventually, we want to add services as well. Actually, we want each business to feed off the others so that we can leverage costs.

He claimed that the business is trying to raise an additional Rs 80 crore and is in advanced discussions with a foreign investor to secure a funding round of between Rs 200 and 250 crores exclusively for its EV business.

The company’s customer base, according to Vadakkepat, comprises people who engage in trades like plumbing, carpentry, and domestic maintenance; nevertheless, these individuals lack the necessary financial literacy to take use of credit and other services. To make sure that the loans are repaid, Bike Bazaar has established numerous cash collection sites.