OTO Capital, a platform that allows you to own a car faster than ever, has raised a seed fund of Rs 5 crore led by incubator Venture Catalyst. Amongst 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 its operations in October 2018.

Chhazed, a serial entrepreneur, had earlier co-founded Coursewave, which was acquired by a company based in the Silicon Valley. He was also the founding member of CredR, a platform for buying and selling of pre-owned two-wheelers, where he now serves on the advisory board.

Harsh, on the other hand, is an expert of data and technology where he has led several challenging projects with leading startups in Automobile, Fintech and Real Estate in the past. Harsh has also been associated with Fractal Analytics where he oversaw the pricing and distribution model for multiple Fortune 200 Companies.

What does OTO capital offer?

India’s car ownership market is about $40 billion and is still growing despite the mushrooming ride-sharing market.

The startup provides the fastest and the most affordable way for modern Indian consumers to own car. It has also established partnerships with over 100 car showrooms and corporates.

This is what Apoorv Ranjan Sharma, Co-founder and President of Venture Catalysts said: OTO Capital has cracked the code to alter the way car ownership is perceived in India. Also, it is has a strong “technology backbone” as well as the advantage of being India’s first mover. Moreover, the firm’s robust margins, which are almost 2.2X of other car financing platforms, display its potential to completely disrupt the way Indians look at car ownership and financing.

How does the new scheme work?

OTO Capital leverages car usage patterns, strong data analytics, and real-time market inputs to determine the accurate residual value of a vehicle. This ensures that the OTO Monthly Instalments (OMIs) that customers pay are lower than any other financing option. Additionally, with OTO Capital, the customers can opt for a car with a three/four/five-year plan and have the flexibility to change their vehicle at any time.

Buyers are required to pay a low amount of money upfront and need not worry about the resale of the car.

Chhazed, Co-Founder & Chief Executive Officer (CEO), OTO Capital said, “OTO Capital envisions the concept of “Own Together” which offers 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 by paying an initial amount as low as Rs 20,000. He/she pays for a car with up to 30% lower monthly instalments with an option to upgrade or own it at the end of tenure.”