OTO Capital, a Automotive Fintech Venture platform co-founded by Serial Entrepreneur Sumit Chhazed along with Harsh Saruparia providing the most affordable and fastest way to own a car to modern Indian consumers raised INR 5 Crore in its seed funding round. Venture Catalysts, India’s no.1 integrated incubator lead the round. Along with Venture Catalysts, Successful Entrepreneur and Angel Investor K Ganesh, Prolific Industry Veteran Sameer Sawhney amongst others participated in the round. By participating in OTO Capital’s seed funding round, Venture Catalysts has bolstered the platform’s plans to redefine India’s car ownership market worth USD 40 billion
The platform leverages car usage patterns, strong data analytics, and real-time market inputs to determine the accurate residual value of a vehicle. This helps it ensure that the OTO Monthly Instalments (OMIs) that customers pay are lower than any other financing option. Additionally, with OTO Capital, customers can opt for a car with a 3/4/5 year plan and have the flexibility to change their vehicle at any time. They are required to put in a much lower upfront payment and the hassle of resale isn’t theirs either. They can easily upgrade to a better car within their existing budget and with minimal effort by tapping into the services of OTO Capital.
Another facet that makes OTO Capital a solid addition to Venture Catalysts’ portfolio is the fact that it is promoted by a stellar team with proven execution capabilities. Both co-founders Sumit Chhazed and Harsh Saruparia are alumni of IIT-Bombay. Sumit had earlier co-founded Coursewave which was successfully acquired by a Silicon Valley Company. He had also laid the foundation for CredR, an omnipresent platform for buying and selling of pre-owned two-wheelers, where he now serves on the advisory board. Sumit has been featured in Forbes’ list of “30 Millennials Under 30 in Asia who are Changing E-commerce and Shopping”. 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. A former data analyst, Harsh has also been associated with Fractal Analytics where he oversaw the pricing & distribution model for multiple Fortune 200 Companies.
Speaking on his decision to invest in OTO Capital, Dr. 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. The company also has a very strong technology backbone and the first mover advantage in the country. Further its robust margins, which are almost 2.2X of other car financing platforms, display its solid potential to completely disrupt the way Indians look at car ownership and financing. We are thrilled to add OTO Capital to our portfolio and become a part of what promises to be an amazing growth story in the days to come.”
Sumit Chhazed, Co-Founder & 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. With OTO Capital, a customer can walk into a showroom and take car home within 30 minutes paying initial amount of as low as INR 20,000. He/she pays for a car with up to 30% lower monthly installments with an option to upgrade or own it at the end of tenure.
Harsh Saruparia , Co-Founder, OTO Capital affirmed that, At OTO Capital, we take pride in the fact that we have managed to define and deliver to the exact expectations of our modern, savvy and extremely discerning customers. With a blend of IOT-enabled car sensing, instant credit approvals and a deep network in the ecosystem, we are pleased to have now won the confidence of Seasoned Investors. With their guidance, mentorship and financial support, we are certainly well-poised to achieve our goal of making “own together” a norm in the Indian automotive segment.”
Launched its operations in October, OTO Capital already has deep partnerships with 100+ car showrooms and corporates to provide its offering to car buyers at Point of Sale.