Bike Bazaar Secures Debt Financing to Bolster Growth Strategy

Bike Bazaar, a two-wheeler financing and e-commerce platform, has secured Rs 25 crore ($3 million approximately) in debt financing from MAS Financial. This marks the company’s first debt round in 2024.

Debt Issuance and Investment Details

To raise the capital, Bike Bazaar’s board approved the issuance of 2,500 non-convertible debentures (NCDs) with a face value of Rs 1 lakh each, according to regulatory filings accessed from the Registrar of Companies. The debt investment carries a tenure of 30 months and an interest rate of 10.70% per year.

Previous Funding and Investor Landscape

This debt financing adds to Bike Bazaar’s existing funding pool of approximately $80 million. Notably, the company closed a $30 million funding round led by Women’s World Banking Asset Management (WAM) in February 2023.

Investor data platform TheKredible reveals Elevar Equity as the largest external stakeholder with a 25% stake, followed by Faering Capital at 22%. The company’s co-founders, Srinivas Kantheti and Karunakaran Vadakkepa, hold a combined ownership of 12.47%.

Expanding Services and Market Reach

Founded in 2017, Bike Bazaar caters to customers seeking financing for two-wheeler purchases, including both new and pre-owned vehicles, as well as electric models. Their website boasts over 300,000 financed vehicles to date.

Beyond financing solutions, Bike Bazaar operates an online marketplace for buying and selling two-wheelers. The company intends to utilize the fresh funds to expand this marketplace, particularly focusing on increasing its presence in rural markets.

Financial Performance and Competitive Landscape

While Bike Bazaar’s financial statements for FY24 are yet to be filed, their FY23 results showcased a 20% increase in operating income to Rs 180 crore. Additionally, the company managed to reduce its losses to Rs 43 crore in FY23 compared to Rs 55 crore in the previous year.

Bike Bazaar operates in a competitive landscape alongside startups like Cars24, Droom, and CredR, all vying for a share of the two-wheeler market.