Car-leas­ing fi­nancier OTO Cap­i­tal to of­fer in­sur­ance prod­ucts

The Hindu Business Line - - BANKING - PRIYANKA PANI

OTO Cap­i­tal, a car leas­ing fi­nance com­pany, has raised seed fund­ing of ₹5 crore, led by in­cu­ba­tor Ven­ture Cat­a­lyst. Among other in­vestors who par­tic­i­pated in the round were vet­eran an­gel in­vestors K Ganesh and Sameer Sawh­ney.

Founded by IIT-Bom­bay alum­nus Su­mit Ch­hazed, along with Harsh Saru­paria, OTO Cap­i­tal launched op­er­a­tions in Oc­to­ber. It pro­vides easy fi­nance op­tions for buy­ers look­ing to lease a car for the long term; it also al­lows them to sell and up­grade them in a has­sle-free man­ner. The start-up is also plan­ning to of­fer in­sur­ance prod­ucts soon.

Ch­hazed, OTO’s co-founder and CEO, said: “We of­fer a new way of fi­nanc­ing cars with flex­i­ble usage terms that ap­peal to mil­len­nial cus­tomers. Now a cus­tomer can walk into a show­room and take a car home within 30 min­utes pay­ing the ini­tial amount of as low as ₹20,000. He/she pays for a car with up to 30 per cent lower monthly in­stal­ments, with an op­tion to up­grade or own it at the end of the ten­ure.”

Ch­hazed is also the found­ing mem­ber of CredR, a plat­form for buy­ing and sell­ing pre-owned two-wheel­ers.

The Mumbai-based start-up al­ready has part­ner­ships with over 100 car show­rooms and cor­po­rates. In­dia’s car own­er­ship mar­ket is at $40 bil­lion, and is still grow­ing de­spite the mush­room­ing ride-shar­ing mar­ket.

Apoorv Ran­jan Sharma, co­founder and Pres­i­dent of Ven­ture Cat­a­lysts, told Busi­nessLine: “OTO Cap­i­tal has cracked the code to al­ter the way car own­er­ship is per­ceived in In­dia. It also has a very strong tech­nol­ogy back­bone and the first-mover ad­van­tage in the coun­try. Fur­ther, its ro­bust mar­gins, which are al­most 2.2 times that of other car fi­nanc­ing plat­forms, dis­play its solid po­ten­tial to com­pletely dis­rupt the way In­di­ans look at car own­er­ship and fi­nanc­ing.”

OTO Cap­i­tal lever­ages car usage pat­terns, uses data an­a­lyt­ics, and real-time mar­ket in­puts to de­ter­mine the ac­cu­rate resid­ual value of a ve­hi­cle, and the EMIs that cus­tomers pay are lower than any other fi­nanc­ing op­tions.

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