Women's World Banking Management Leads a Rs 170 crore fundraising Round for Bike Bazaar

By: WE Staff | Thursday, 1 September 2022

Bike Bazaar, which was originally founded in 2017 as a used two-wheeler financing company by former Bajaj Auto executive Srinivas Kantheti and former Bajaj Finance executive Karunakaran Vadakkepat, now operates a number of businesses in the two-wheeler market, including a marketplace for pre-owned two-wheelers, a new electric vehicle financing business, as well as additional services like leasing and insurance. According to officials, it will also increase servicing.

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

“Our strategy is to be present across the whole lifecycle of the two-wheeler,” Vadakkepat said. “For example, someone who is looking to buy a two-wheeler may want to exchange his old two-wheeler. He can avail of both the financing services and the resale service from us. We should be able to sell that old vehicle through our marketplace, or different pre-owned sales channels. We want to add value-added services like RTO transfers, insurance, etc, and over time we want to add services also. Actually, we want every business to feed on the other business so that we can leverage costs.”

According to him, the company is negotiating to raise an additional Rs 80 crore and is also in the advanced stages of negotiations with a foreign investor to raise an additional Rs 200–250 crore specifically for its EV business.

According to Vadakkepat, the business is still figuring out how to structure itself to accept the funding intended especially for the EV business.

Bike Bazaar claims to operate in more than 140 cities across India with more than 1,000 touchpoints, and it has a considerable presence in smaller towns. More than 3,00,000 two-wheeler loans have been disbursed by its financing division to date, and as of July 2022, it had transacted business worth more than Rs 1,500 crore in total gross transaction value. The company has amassed a total of Rs 400 crore in equity funding since its founding.

According to Vadakkepat, the company's clientele includes individuals who work in fields such as plumbing, carpentry, and household maintenance; however, these individuals lack the necessary financial literacy to take advantage of credit and other facilities. 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.

“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,” said Christina Juhasz, chief investment officer of Women’s World Banking Asset Management.

The Federal Ministry for Economic Cooperation and Development of Germany and the European Union provide funding for WAM.