Two-wheeler financing startup Bike Bazaar raises Rs 25 crore in debt from MAS Financial

Pune-based two-wheeler financing and e-commerce platform Bike Bazaar has raised Rs 25 crore in debt funding from MAS Financial Services Ltd.

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, Entrackr reported, citing the company's regulatory filing accessed from the Registrar of Companies.

Terms of the debt investment

The report said the debt investment is structured for a tenure of 30 months and carries an interest rate of 10.70% per annum. 

So far, Bike Bazaar has raised approximately $80 million from investors, including KFW DEG, Faering Capital, Elevar Equity, and Women's World Banking.

In February last year, The startup raised $30 million in a funding round led by Women’s World Banking Asset Management (WAM).

What does Bike Bazaar do?

Founded in 2017 by Srinivas Kantheti and Karunakaran Vadakkepat, Bike Bazaar provides financing services for customers looking to purchase two-wheelers, including used and electric models.

The startup facilitates loans for over 300,000 vehicles to date and operates a marketplace for buying and selling two-wheelers. 

According to startup data intelligence platform TheKredible, Elevar Equity holds the largest external stake in Bike Bazaar at 25%, followed by Faering Capital at 22%. The co-founders, Srinivas Kantheti and Karunakaran Vadakkepa, collectively own 12.47% of the company.