Two-wheeler financing and e-commerce platform Bike Bazaar has successfully raised Rs 25 crore (approximately $3 million) in debt funding from MAS Financial Services Ltd. This marks the first debt round for the Pune-based company in 2024.
The board of Bike Bazaar passed a special resolution to issue 2,500 NCDs (non-convertible debentures) priced at Rs 1,00,000 each, raising the total amount. The debt investment, structured for a tenure of 30 months, carries an interest rate of 10.70% per annum, according to regulatory filings accessed from the Registrar of Companies.
Founded in 2017, Bike Bazaar offers financing solutions for purchasing two-wheelers, including used and electric models. The platform has facilitated loans for over 300,000 vehicles to date and also operates a marketplace for buying and selling two-wheelers.
With previous funding rounds totaling approximately $80 million, including a notable $30 million round led by Women’s World Banking Asset Management (WAM) in February last year, Bike Bazaar has garnered significant investor confidence. Elevar Equity holds the largest external stake at 25%, followed by Faering Capital at 22%, with co-founders Srinivas Kantheti and Karunakaran Vadakkepa collectively owning 12.47% of the company, as per startup data intelligence platform TheKredible.
The company aims to utilize the fresh funding to scale its marketplace operations and expand its footprint in rural markets. Despite challenges, Bike Bazaar reported a 20% increase in income from operations to Rs 180 crore in FY23, managing to narrow its losses from Rs 55 crore to Rs 43 crore during the same period.
Bike Bazaar competes in a competitive landscape alongside startups like Cars24, Droom, and CredR in the burgeoning two-wheeler financing and e-commerce sector.
Source: Entrackr
