OTO Capital, a Mumbai-based car financing startup has raised around ₹5 crore in its seed funding round which was led by funding platform Venture Catalysts. K Ganesh and Sameer Sawhney are among the angel investors who invested in this funding round.
The newly raised funding will be used by the company to expand its marketplace, create awareness among customers related to the financing and to develop its proprietary analytics system.
Apoorv Ranjan Sharma, co-founder president of Venture Catalysts, said:
OTO Capital has cracked the code to alter the way car ownership is perceived in India. Its robust margins, which are almost 2.2X of other car financing platforms, display its solid potential to completely disrupt the way Indians look at car ownership and financing.
OTO Capital was founded in October this year by Sumit Chhazed and Harsh Saruparia. It helps new car owners pay for their vehicles on a monthly basis. Customers can opt for a 3-year, four-year or five-year plan for the car and can return and exchange the vehicle at any time, according to the company’s website.
In a statement, the company says that it has already partnered with more than 100 car showrooms and corporate to provide its offerings at point of sale. Sumit Chhazed, founder and CEO of the company said:
With OTO Capital, a customer can walk into a showroom and take car home within 30 minutes by paying an initial amount of as low as Rs 20,000. He/she pays for a car with up to 30% lower monthly installments with an option to upgrade or own it at the end of tenure.
To run its business, the startup is relying on car usage patterns, data analytics and real-time market inputs in order to determine the accurate residual value of the vehicle. This helps the company determine the monthly instalments that the customer needs to pay.