Bengaluru, 14thDecember, 2022: OTO, a digital commerce platform and two-wheeler financier, has today announced its partnership with Northern Arc Capital, a non-banking finance company (NBFC), to cater to a large segment of underserved two-wheeler customers.
Through this partnership, Northern Arc Capital will be able to access OTO’s large retail base of two-wheeler customers. OTO’s consistent focus on technology and the seamless application process will further help Northern Arc Capital to enhance its capabilities and build the two-wheeler retail portfolio. The financing option on OTO’s platform through Northern Arc Capital will be available pan India. Furthermore, OTO aims to disburse around 800+ crores in CY 23 through its lending partners and expects a contribution of about 20% of the target disbursement from Northern Arc Capital.
Commenting on the partnership, Sumit Chhazed, Co-Founder and CEO of OTO said “Financing plays a major role in the choice of individuals before buying a two-wheeler. While the pandemic led to a setback in the overall sale of two-wheelers, a statista report on Indian loans indicates that the segment is expected to grow at a compounded rate of 11% or more annually with the ease of covid restrictions.”
“At OTO, we aim to understand the trends and growing needs of our two-wheeler customers, and this partnership with Northern Arc Capital will serve as a way to cater to their evolving needs with the help of digitalization and new business models,” Chhazed added.
Hariwansh Kumawat the CFO of OTO said, “We are very excited to start this journey with Northern Arc Capital. Through this partnership, we will be able to cater to a larger segment of society in terms of two-wheeler financing needs, thereby enhancing our reach. It will also improve OTO’s overall loan disbursement capabilities and allow us to better finance our customers which would bring them one step closer to owning their dream two-wheeler.”
