Pune-based two-wheeler financing and e-commerce platform, Bike Bazaar Secures INR 25 Crore (approximately $3 million) in debt from MAS Financial. This marks the first debt round for the company in 2024.
The company’s board has approved a special resolution to issue 2,500 non-convertible debentures (NCDs) at Rs 1,00,000 each, raising the total of Rs 25 crore, according to a regulatory filing accessed from the Registrar of Companies. The filings indicate that the debt investment comes with a tenure of 30 months and an interest rate of 10.70% per annum.
To date, Bike Bazaar has raised around $80 million, including a $30 million round led by Women’s World Banking Asset Management (WAM) in February last year. As per the startup data intelligence platform TheKredible, Elevar Equity is the largest external stakeholder with 25%, followed by Faering Capital at 22%. Co-founders Srinivas Kantheti and Karunakaran Vadakkepa together hold 12.47% of the company.
Founded in 2017, Bike Bazaar offers financing services for customers buying two-wheelers, including used and electric two-wheelers. According to its website, the company has financed over 300,000 vehicles to date. In addition to financing, Bike Bazaar operates a marketplace for buying and selling two-wheelers. The company plans to use the fresh funds to scale this marketplace and expand its presence in rural markets.
Although Bike Bazaar has yet to file its financial statement for FY24, its income from operations surged 20% to Rs 180 crore in FY23, as per its annual financial statement filed with the RoC. The company managed to reduce its losses to Rs 43 crore in FY23 from Rs 55 crore in the previous year. Bike Bazaar competes with startups such as Cars24, Droom, CredR, and others.
Avinash Dyal