Bike Bazaar, a prominent two-wheeler financing and e-commerce platform, has successfully raised Rs 25 crore (approximately $3 million) in debt from MAS Financial. This marks the first debt round for the Pune-based company in 2024.
Founded in 2017, Bike Bazaar specializes in providing financing services for customers purchasing two-wheelers. The platform also offers loans for used and electric two-wheelers. To date, the company has financed over 300,000 vehicles. In addition to its financing services, Bike Bazaar operates a marketplace for buying and selling two-wheelers. Co-founders Srinivas Kantheti and Karunakaran Vadakkepa collectively hold a 12.47% stake in the company.
The board of Bike Bazaar passed a special resolution to issue 2,500 non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 each, raising Rs 25 crore, as per the regulatory filing accessed from the Registrar of Companies. The debt investment has a tenure of 30 months with an interest rate of 10.70% per annum.
This latest funding round adds to Bike Bazaar’s impressive track record, with the company having raised around $80 million to date. This includes a significant $30 million round led by Women’s World Banking Asset Management (WAM) in February last year. According to startup data intelligence platform TheKredible, Elevar Equity holds the largest external stake at 25%, followed by Faering Capital with 22%.
Bike Bazaar’s financial performance has shown significant improvement. Although the company has yet to file its financial statement for FY24, its income from operations surged by 20% to Rs 180 crore in FY23, as per its annual financial statement filed with the Registrar of Companies. The company also managed to reduce its losses to Rs 43 crore in FY23 from Rs 55 crore in the previous year.