Matrix leads $6 Mn Series A round in automotive leasing startup OTO

OTO, a two-wheeler buying and financing platform, has raised $6 million in a Series A investment round led by Matrix Partners India.

The round also includes participation from existing and new investors such as Prime Venture Partners, 9Unicorns and Better Capital and marquee angel investors like Asish Mohapatra, Ramakant Sharma, Kunal Shah, K Ganesh and Ashneer Grover and Suhail Sameer.

Three-year-old OTO operates on a simple financing model for 2-wheelers where the buyer pays an upfront amount like any other loan but gets up to 30% lower EMIs with an option to retain, return or upgrade at the end of the tenure.

Currently present in Chennai, Bengaluru, Pune, Hyderabad, and Mysore, the company plans to launch its financing-cum-commerce platform in 15 new cities including, Delhi, Nashik, Indore and Vijaywada.

OTO will also double its team size by March 2022 and plans to hire across verticals, especially technology, product, marketing, and operations.