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OTO, a two-wheeler finance and digital commerce platform, expects to increase its EV portfolio from the current 20-22 per cent to 40 per cent by the end of this year. Presently, OTO gets 5,000 bookings on a monthly basis, according to a top executive of the company.
Talking on the sidelines of a recently announced partnership with Matter, a tech innovation-led start-up, Sumit Chhazed, CEO and co-founder, OTO, said, “Our intention is to scale up to 50,000 bookings a month this year.” Currently, the platform is present in 22 cities and aims to be in 30-35 cities by the end of this year.
OTO and Matter have announced a longer-term partnership to accelerate the EV transition in the country. “We believe that 40 per cent of our portfolio will definitely come from EVs, and for this, we look for long-term partnerships, such as the one with Matter,” he said.
Also read:Zypp Electric and Zomato partner to deploy 1 lakh e-scooters by 2024
‘Paperless process’
Both companies have partnered to provide consumers with affordable and flexible vehicle financing options for its motorbike, Matter AERA, for which bookings will start in the next 90 days. The finance for the motorbike, along with its booking, will be available through the OTO website and mobile app. “This initiative is a step further towards offering digital two-wheeler finance to customers through a paperless process at the convenience of their place and time of choice,” said Mohal Lalbhai, Group CEO and Founder, Matter.
OTO claims to offer financing for EVs with up to 35 per cent lower EMIs, reducing the financing constraints of consumers. “Using the pricing model and the propriety tool that we have built, we estimate the resale value after two years. And will give customers the choice not to pay it upfront, hence, the EMIs are going to be certainly lower than compared to the market,” said Chhazed.
In FY23, OTO disbursed around ₹385 crore and expects to disburse roughly ₹800 crore. The growth in the two-wheeler loan portfolio indicates that more people are willing to adopt electric two-wheelers, which is a positive sign for the environment and the economy.
“This collaboration will allow us to offer our consumers an end-to-end EV buying experience, making the transition to electric mobility simpler and more affordable. The partnership will be applicable online and at all dealership outlets of Matter,” Lalbhai added.
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