Bike Bazaar, an online marketplace and financing platform for two-wheelers, has raised a debt of INR 25 Cr (roughly $3 Mn) from financial services provider MAS Financial.
The startup’s board approved a special resolution to assign 2,500 non-convertible debentures (NCDs) to MAS Financial at an issue price of INR 1 Lakh each, according to Registrar of Companies (RoC) filings that Inc42 was able to access. This equals a total of INR 25 Cr over time.
According to the documents, Bike Bazaar increased the debt investment with a 30-month term and an interest rate of 10.7% annually.
Entrackr was the first to report on the development.
Bike Bazaar is an online marketplace founded in 2017 by Srinivas Kantheti and Karunakaran Vadakkepat to buy and sell used motorcycles. It also provides loans for the purchase of new and used two-wheelers. The startup further states that it offers electric bike rentals and three-wheeler loans.
According to reports, Bike Bazaar reduced its net loss from INR 55 Cr in FY22 to INR 43 Cr in FY23, a 21% decrease. The fiscal year ended March 2023 (FY23). In FY23, revenue from operations increased 20% YoY to INR 180 Cr.
With the fundraiser, Bike Bazaar has added to the growing number of Indian startups that have recently raised debt as the startup ecosystem continues to be threatened by funding winter and unfavorable macroeconomic pressures.
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