Bengaluru : OTO, the two-wheeler buying and financing innovator, today announced the launch of its Rider Empowerment Program (REP), as they endeavour to help shipping agents, own and ride their two-wheelers. The program also benefits the large segment of last-mile logistics companies to aid and incentivize their employees to ride a brand-new two-wheeler to earn, keeping their asset-light.
The program allows complete freedom to the riders to select and own two-wheelers of their choice. This can be a regular motorbike or an electric two-wheeler, which has currently seen steady growth. The partner companies, who enroll in this model, are only required to make timely payments of EMIs to OTO on behalf of the riders while ensuring that the riders get enough opportunities weekly, to meet the EMI expenses. With an initial down payment of just 10%, the program also enables multiple tenure options from 12 to 30 months. The vehicle is also comprehensively insured for the complete tenure.
Commenting on the launch, Sumit Chhazed, Co-founder, OTO, said, “With a huge uptake in the number of shipping agents across the country during the pandemic, there was a dire need to support our fellow riders. Through the Rider Empowerment Program, we aim to return the services offered by them during crucial times, helping the riders become Atmanirbhar – driving their own vehicle to earn more. Additionally, it helps the partner companies to retain their employees for a longer time through incentivizing them.”
For this program, OTO has partnered with Zyngo – a last mile logistics company and moEVing – an EV tech platform. OTO further aims to enroll around 10,000 riders in the coming months and has committed a capital of INR 75 Crores under the program.
Prateek Rao, Founder, Zyngo Mobility said, “As for any company, their people are a possession to keep, and as Industry players, we must make their lives easy through affordable access and ownership of their assets like two-wheelers. We recognize that OTO has developed the Rider Empowerment Program that will bring our riders much-needed relief. We believe that collaborations such as this will play a significant role towards a growth like never before.”
Starting in 2018, OTO operates on an innovative financing model for 2-wheelers where the buyer pays an upfront amount like any other loan but gets up to 35% lower EMIs with an option to retain, return or upgrade at the end of the tenure. The platform works in partnership with various banks and NBFCs to provide the most hassle-free financing options to its customers. It also provides full auto lifecycle management, from credit underwriting to insurance, maintenance, and eventual resale of the vehicle.
OTO’s robust growth and collection performance garnered strong interest post-pandemic from various banks and NBFCs and got it multiple lending partners with the commitment of lending over INR 250Crs on the OTO platform for the next 12months. The company recently raised $6M in a Series A investment round led by Matrix Partners India to expand and re-imagining the 2-wheeler buying and ownership experience for millions of Indians.