OTO, a digital commerce platform and two-wheeler financier, has partnered with Northern Arc Capital, a non-banking finance company (NBFC), to expand its customer base.
It aims to disburse more than ₹800 crore in CY23 through its lending partners and expects a contribution of 20 per cent of the target disbursement from Northern Arc Capital, the company said in a press release
Additionally, through this partnership, Northern Arc Capital will be able to tap OTO’s retail base of two-wheeler, enhancing its capabilities and expanding the two-wheeler retail portfolio, the company said. The financing option from Northern Arc Capital will be available pan-India through OTO’s platform.
Evolving needs
“Financing plays a major role in the choice of individuals before buying a two-wheeler. While the pandemic led to a setback in the overall sale of two-wheelers, a Statista report on Indian loans indicates that the segment is expected to grow at a compounded rate of 11 per cent or more annually with the easing of Covid restrictions. We aim to understand the trends and needs of our two-wheeler customers, and this partnership with Northern Arc Capital will serve as a way to cater to their evolving needs with the help of digitalisation and new business models,” Sumit Chhazed, co-founder and CEO of OTO.
The company offers its services across 10 cities and has more than 500 dealer partners. It claims to have financed more than 30,000 two-wheeler vehicles.