By Inc42 Media
Bike Bazaar’s board passed a resolution to issue 2,500 NCDs to Ahmedabad-based MAS Financial at an issue price of INR 1 Lakh apiece
Founded in 2017, Bike Bazaar operates an online marketplace for buying and selling pre-owned two wheelers and provides loans for two-wheelers
Bike Bazaar trimmed its net loss 21% YoY to INR 43 Cr in FY23, while revenue from operations rose 20% YoY to INR 180 Cr
Online two-wheeler marketplace and financing platform Bike Bazaar
has raised a debt of INR 25 Cr (nearly $3 Mn) from financial services company MAS Financial.
As per Registrar of Companies (RoC) filings accessed by Inc42, the startup’s board passed a special resolution to allot 2,500 non-convertible debentures (NCDs) to MAS Financial at an issue price of INR 1 Lakh each. This translates to a cumulative sum of INR 25 Cr.
As per the filings, Bike Bazaar raised the debt investment at an interest rate of 10.7% per annum for a tenure of 30 months.
The development was first reported by Entrackr.
Founded in 2017 by Srinivas Kantheti and Karunakaran Vadakkepat, Bike Bazaar operates an online marketplace for buying and selling pre-owned two wheelers. It also offers loans for buying new as well as old two-wheelers.
The startup also claims to provide electric three-wheeler loans and electric bikes on rentals.
The startup last raised $30 Mn in its Series D funding round last year from DEG, the investment arm of German state-owned development bank KfW, Women World’s Banking Asset Management (WAM), Elevar Equity, and Faering Capital.
Overall, Bike Bazaar has raised over $101 Mn in funding since its inception.
Bike Bazaar claims to have touch points spanning 100 locations across the country. It claims to have so far disbursed loans worth INR 3,400 Cr to 64 Lakh customers.
Bike Bazaar reportedly trimmed its net loss by 21% to INR 43 Cr in the fiscal year ended March 2023 (FY23) from INR 55 Cr in FY22. Revenue from operations rose 20% year-on-year (YoY) to INR 180 Cr in FY23.
With the fundraise, Bike Bazaar has joined the growing list of Indian startups that have raised debt in the recent past as funding winter and adverse macroeconomic pressures continue to loom over the startup ecosystem.
Earlier this week, Inc42 reported that logistics startup Ripplr has received board approval to secure INR 40 Cr in debt from IPO-bound Northern Arc. Prior to that, edtech unicorn upGrad was also said to be planning to raise INR 287.5 Cr in debt from financing platform EvolutionX Debt Capital.
In June, NBFC Northern Arc Capital raised $75 Mn in debt from Dutch entrepreneurial development bank FMO. Omnichannel jewellery brand Bluestone also bagged INR 100 Cr debt from Neo Markets last month.