Two-wheeler financing and e-commerce platform Bike Bazaar has raised Rs 25 crore (approximately $3 million) in debt from MAS Financial. This is the first debt round for the Pune-based company in 2024.
The board at Bike Bazaar has passed a special resolution to issue 2,500 NCDs (non-convertible debentures) at an issue price of Rs 1,00,000 each to raise Rs 25 crore, its regulatory filing accessed from the Registrar of Companies shows.
According to the filings, the debt investment is for the tenure of 30 months with a rate of interest rate of 10.70% per annum.
Bike Bazaar has raised around $80 million to date including its $30 million round led by Women’s World Banking Asset Management (WAM) which closed in February last year.
According to the startup data intelligence platform TheKredible, Elevar Equity is the largest external stakeholder with 25% followed by Faering Capital’s 22%. Its co-founders Srinivas Kantheti and Karunakaran Vadakkepa cumulatively command 12.47% of the company.
Founded in 2017, Bike Bazaar provides financing services to customers looking to buy a two-wheeler. The platform also facilitates loans for used two-wheelers and electric two-wheelers and as per its website, the company has financed over 300,000 vehicles to date.
Besides financing, Bike Bazaar also has a marketplace for selling and buying two-wheelers. The company plans to use the fresh funds to scale this marketplace and aims to expand its presence in the rural market.
Bike Bazaar is yet to file its financial statement for FY24 but its income from operations surged 20% to Rs 180 crore in FY23, as per its annual financial statement filed with the RoC. The company managed to control its losses to Rs 43 crore in FY23 from Rs 55 crore in the previous year.
Bike Bazaar competes with startups such as Cars24, Droom, CredR, and others.
