India-based used motorcycle marketplace Bike Bazaar has raised INR250 million ($3.0 million U.S.) in debt financing.

Entrackr cites regulatory filings that show Bike Bazaar has issued 2,500 non-convertible debentures of INR100,000 apiece to MAS Financial. The debt carries an interest rate of 10.7% per annum and is due to be repaid in 30 months.

Founded by Karunakaran Vadakkepat and Srinivas Kantheti in 2017 and headquartered in Pune, Bike Bazaar specializes in selling, financing, and servicing used motorcycles.

According to its website, Bike Bazaar “is a two-wheeler lifecycle services company providing accessible and affordable financing for new two-wheelers, electric two-wheelers and pre-owned two-wheelers and a range of affordable solutions along the ownership lifecycle. The Company’s core competency lies in superior understanding of the two-wheeler life cycle, unique rural and pre-owned industry segment expertise and pan-India relationships with original equipment manufacturers, dealers, sub-dealers and lenders.”

“It offers multiple innovative solutions like Direct Collection Model for its rural and semi-urban customers and pre-owned two-wheeler financing for urban customers. Bike Bazaar is rapidly increasing its focus in the electric mobility space and is eyeing both b-to-c and b-to-b segments, offering easy financing, leasing and rental solutions.”

In January 2023, DEG — the investment arm of German state-owned bank KfW — invested INR850 million in Bike Bazaar, noting how its direct-collection model and on-site financing solutions could help underbanked populations in rural areas. More recently, Bike Bazaar partnered with Montra Electric, an EV brand, to provide loans to its customers.

Elevar Equity is the largest external shareholder in Bike Bazaar, with a 25% holding, followed by Faering Capital (22%), according to Entrackr.

Bike Bazaar generated revenue of INR1.8 billion and recorded a loss of INR436 million during the 12 months to March 2023.

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