A Bengaluru-based startup named OTO recognized that several people could not connect with food delivery apps and other online sites for product delivery because of a lack of funds to own a two-wheeler. Sumit Chhazed, the co-founder of OTO, started in 2018 to present ten times simpler, faster, and more convenient ways for 20 million Indians to buy and finance their 2-wheelers every year.
What Is In Store For Riders?
While speaking to The Logical Indian, Sumit explained,
"OTO operates on an innovative financing model for all two-wheelers where the buyer would have to pay an upfront amount like any loan but he would get up to 35 per cent lower EMIs with an option to retain, return or upgrade at the end of the tenure. The platform works in partnership with various banks and NBFCs (Non-Banking Financial Companies) to provide the most hassle-free financing options to its customers."
The co-founder of OTO mentioned that OTO has an app-based layer to help 2-wheeler buyers to find all the top options in one place and schedule a home test drive at their convenience and comfort. After its selection, customers can apply for a loan digitally, get approval within 30 minutes and book the 2-wheeler from home comfort at the nearest store. What started with mere seven employees is now a family of more than 380 people.
Rider Empowerment Program
Recently, OTO launched a rider empowerment program intending to provide help to shipping agents to own and ride their two-wheelers. The program also looks out for the large segment of last-mile logistics companies to aid and incentivize their employees to ride a brand-new two-wheeler to earn, keeping their asset-light. The program offers multiple tenures from 12 to 30 months, and the interest rate ranges from 10 to 14 per cent. Sumit explained to The Logical Indian that the rider would have to initially give Rs 1,500 as the processing fee, after which the vehicle is hypothecated with OTO or its financial partners. Moreover, the startup also provides comprehensive insurance for the vehicle.
When asked about the short-term and long-term aims of the company, Sumit mentioned to The Logical Indian,
"In the short term, OTO aims to expand to 15 cities, evolve our commerce cum finance platform and enable 1,00,000 Indians to buy & finance their dream bike with OTO. For the long term, OTO envisions to be the Super App for 100 million-plus two-wheeler users in India making two-wheeler ownership accessible, rewarding and easy."