OTO Capital, an alternate finance startup for purchasing two-wheelers, is now available for buyers in Chennai. OTO enables buyers to lease two-wheelers from all the major brands and features OMIs (Ownership Monthly Installments) which are 30% lower than EMIs and a low, refundable down payment.
Announcing its entry into the Chennai market, OTO has partnered with more than 30 dealers across the city. OTO will be providing its services both through an online and offline model. The company aims to lease more than 3000 two-wheelers and partner with more than 75 dealers by the end of 2021. OTO will be launching home test rides and home delivery will be made available in Chennai from March 2021. The company will also expand into Madurai and Coimbatore soon.
OTO Capital has already seen a huge demand from potential buyers in the city with over 3,000 booking requests in the last 4 weeks. The company has partnered with more than 30 showrooms and has already delivered 20 bookings to buyers in February 2021. OTO has tied up with prominent dealerships in the city such as JSP Honda, Mohanna Hero, Bikerz Yamaha, Brilliant TVS, Sri Raj Bajaj, Athyuk Suzuki, Sri Venkateswara RE, SSR Motors, Vardhaman Yamaha, Sri VardhamanVespa and many more.
OTO offers a new mode of financing for two-wheeler purchases and is targeted at retail customers. OTO finance plan features OMIs (Ownership Monthly Installments) which are 30% lower than EMIs and a low, refundable down payment. Founded in 2018 by IIT-Mumbai alumnus Sumit Chhazed and Harsh Saruparia, OTO partners with Banks and NBFCs to provide the capital offers customers with an alternative option for financing their vehicles. OTO provides a full auto-lifecycle management, from credit underwriting to insurance, maintenance and eventual resale of the vehicle
The online purchase option is now live on OTO’s website for all Chennai-based customers. Two-wheeler owners in Chennai can visit OTO’s website, select their vehicle and preferred plan and complete their application which is 100% online. Post the approval buyers can confirm the booking and OTO will assign the nearest showroom for the delivery of the two wheeler.
The executives of partnered showrooms are notified on OTO Capital’s LMS App with the user details and can complete the further process via the app once the user arrives at the showroom. This process enables OTO to make the delivery on the same day to its customers. Apart from this, OTO LMS App allows the executives to share plans and complete KYC process by themselves for any walk in customers.
OTO Capital Co-founder Sumit Chhazed said, “We are glad to serve buyers and dealers in Chennai as it is one of the largest contributors to the automobile sector in the country and comes among the top 10 global auto hubs. Chennai is very crucial for us and consumers from the city have been extremely active on our social channels and digital platform in enquiring about OTO Capital’s plans and offers.”
OTO is currently available at more than 110 dealers across Bengaluru, Pune, Hyderabad and Chennai. It has financed more than 2000 two wheelers worth over Rs 17 crore in 2020. It is adding more than 400 customers per month and plans to grow 10X this year. Even in the Electrical Vehicle (EV) segment, OTO is seeing a significant growth with all major brands such as Hero Electric, Piaggio, Okinawa and others partnering with the company to offer better financing options for their buyers.
The OTO leasing model is the most affordable and flexible model available to consumers today. The main benefit with OTO is that one can save up to 30% through OTO Monthly Installments (OMI) compared to a traditional bank loan EMI. The buyer has complete control over the ownership and can choose to lease the vehicle between 12 months to three years. At the end of the leasing period, one can also buy back the vehicle from OTO or upgrade to any other vehicle of their choosing.
With growing preference for personal mobility, quick adoption of digital practices by industry to serve consumers, the automobile sector in India has started to see signs of overall recovery since January 2021. Vehicle purchasing has long been dependent on physical interactions and on-ground sales, but now major OEMs have started leveraging online platforms like OTO Capital to promote their vehicles and get the attention of buyers. This is a difficult transition for both buyers and sellers and OTO aims to provide a seamless process to carry out the transactions.