Bike Bazaar is an e-commerce startup that offers a financing platform with loaning services. The startup secured $3 million in its first debt funding round led by MAS Financial. This Pune-based company plans to use these fresh proceeds to scale its marketplace, expand its market presence, enhance its platform for better user experience, and expand its network.
The board at Bike Bazaar approved a resolution to allot 2,500 non-convertible debentures at an issue price of Rs 1,00,000 each to raise Rs 25 crore. The investment is for 30 months with an interest rate of 10.70 percent per year. The company has secured around 80 million USD, including 30 million USD raised during a backing round led by Women’s World Banking Asset Management. The startup data intelligence platform, kredible, mentioned that after this round, Elevar Equity became the biggest shareholder with a 25 percent stake, followed by Faering Capital with 22 percent. The co-founders of Bike Bazaar, Karunakaran Vadakkepa & Srinivas Kantheti, own a 12.47 percent stake in the company.
The startup offers financial services to customers interested in two-wheelers. The platform also provides loans for two-wheelers and EV vehicles. To date, the company has served over 300,000 two-wheeler vehicles financially. The company also offers a platform for selling and buying two-wheeler vehicles. The firm competes with startups, including Droom, Cars24, and CredR. This fresh capital will be used to build innovative two-wheeler solutions for market expansion and to increase the platform’s financing capability.
Bike Bazaar reported a 20% percent increase in its operations to Rs 180 crore in FY23. The company managed its losses to Rs 43 crore during the same period. This debt shows the trust of MAS Financial in the Bike Bazaar market potential and business model. The company offers two-wheeler vehicles to its users. Crore. To reduce its net loss, the startup downsized its workforce and the total number of employees. This debt will help the startup to scale up operations and strengthen its position in the two-wheeler and e-commerce market.
Conclusion
Two-wheeler and e-commerce startup Bike Bazaar secured $3 million in its first debt round led by MAS Financial. The company intends to use these fresh proceeds to scale its marketplace, expand its market presence, enhance its platform for better user experience, and expand its network. The company has raised 80 million USD to date, including $30 million, secured during a funding round led by Women’s World Banking Asset Management last year.
After this round, Elevar Equity became the biggest shareholder with a 25 percent stake, followed by Faering Capital with 22 percent. The platform provides financial services and facilitates loans for two-wheelers and electric two-wheelers. This fresh capital will be used to build innovative two-wheeler solutions for market expansion and to increase the platform’s financing capability. This debt shows the trust of MAS Financial in the Bike Bazaar market potential and business model.
