Bike Bazaar is an e-commerce startup that offers a financing platform with loaning services. The startup  secured $3 million in its first debt funding round led by MAS Financial. This Pune-based company plans  to use these fresh proceeds to scale its marketplace, expand its market presence, enhance its platform  for better user experience, and expand its network.  

The board at Bike Bazaar approved a resolution to allot 2,500 non-convertible debentures at an issue  price of Rs 1,00,000 each to raise Rs 25 crore. The investment is for a period of 30 months with an  interest rate of 10.70 percent per year. The company has secured around 80 million USD to date  including 30 million USD raised during a backing round led by Women’s World Banking Asset  Management. The startup data intelligence platform, the kredible mentioned that after this round  Elevar Equity became the biggest shareholder with a 25 percent stake followed by Faering Capital with  22 percent. The co-founders of Bike Bazaar, Karunakaran Vadakkepa & Srinivas Kantheti own a 12.47  percent stake in the company. 

The startup offers financial services to customers interested in two-wheelers. The platform also  provides loans for two-wheelers and EV vehicles. The company has served over 300,000 two-wheeler  vehicles financially to date. The company also offers a platform for selling and buying of two-wheeler vehicles. The firm competes with startups including Droom, Cars24, and CredR. This fresh capital will  be used to build innovative two-wheeler solutions for market expansion and to increase the financing  capability of the platform. 

Bike Bazaar reported a 20 percent increase in its operations to Rs 180 crore in FY23. The company  managed its losses to Rs 43 crore during the same period. This debt shows the trust of MAS Financial  in the Bike Bazaar market potential and business model. The company offers two-wheeler vehicles to  its users. crore. To reduce its net loss the startup downsized its workforce and the total number of  employees. This debt will help the startup to scale up operations and strengthen its position in the  two-wheeler and e-commerce market. 

Conclusion: 

Two-wheeler and e-commerce startup Bike Bazaar secured $3 million in its first debt round led by MAS  Financial. The company intends to use these fresh proceeds to scale its marketplace, expand its market  presence, enhance its platform for better user experience, and expand its network. The company has  raised 80 million USD to date including $30 million secured during a funding round led by Women’s  World Banking Asset Management last year. After this round, Elevar Equity became the biggest  shareholder with a 25 percent stake followed by Faering Capital with 22 percent. The platform provides  financial services and facilitates loans for two-wheelers and electric two-wheelers. This fresh capital  will be used to build innovative two-wheeler solutions for market expansion and to increase the  financing capability of the platform. This debt shows the trust of MAS Financial in the Bike Bazaar  market potential and business model.