OTO - Sumit Chhazed

Bengaluru, 13thDecember, 2022: OTO, a digital commerce platform and two-wheeler financier. It 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.”

About OTO:

OTO was founded in 2018 by IIT-Mumbai alumnus Sumit Chhazed and Harsh Saruparia to present a 10X simpler, faster and more convenient way for 20Mn Indians to buy and finance their 2-wheelers every year.

The company is headquartered in Bengaluru. Its services also available across 10 cities including Hyderabad, Chennai, Pune, Delhi, Ahmedabad, Indore, etc. OTO has created a dramatically simpler leasing-like financing model for 2-wheeler purchases where buyers pay a similar upfront payment like any other loan, pay up to 30% lower EMIs and have the option to own the 2-wheeler at the tenure end OR sell it back to OTO. Around this core of “10X better” financing model & experience, OTO has added an app-based layer to help 2-wheeler buyers to find all the top options in one place, schedule a home test drive at their convenience and then choose to finance with OTO and continue to manage it – all in one place. With its 500+ dealer partners, OTO has financed more than thirty thousand two-wheeler vehicles.

Find more information about OTO on  www.otocapital.in

About Northern Arc Capital:

Northern Arc Capital is a platform in the financial services sector. It was set up primarily with the mission of catering to the diverse credit requirements of under-served households and businesses by providing efficient and reliable access to debt finance. Registered with the RBI as a systemically important, non-deposit taking non-banking finance company (“NBFC”), They have been operating in the financial inclusion space for over a decade with a business model diversified across offerings, sectors, products, geographies and borrower segments.

Their focus is on providing access to credit to underserved households and businesses directly and indirectly through their Originator Partners. Their business model operates with a robust risk management framework that uses a combination of proprietary quantitative data analytics and qualitative field-level insights that aids credit assessment and monitoring.