Bike Bazaar, a two-wheeler life cycle services company, has secured Rs 82 crore from DEG, a subsidiary of KfW Group, and a Germany-based development finance institution.
With this latest raise, Bike Bazaar closes its Series D funding round with a total equity raise of Rs 250 crore. DEG joins Women World’s Banking Asset Management (WAM), Elevar Equity, and Faering Capital as investors in Bike Bazaar. Haitong Securities India served as the investment banker and advisor for this round.
The newly acquired funds will be used to expand the company’s reach into rural areas, as the demand for personal mobility continues to grow. Bike Bazaar will also increase its focus on electric mobility in both the B2B and B2C spaces, offering multiple solutions such as finance, lease, and rental services.
Commenting on the fundraising, Srinivas Kantheti, Bike Bazaar’s co-founder and Managing Director, said that the company is proud to be leading the growth of the two-wheeler financing ecosystem, particularly in tier-II and III markets. Bike Bazaar aims to support the adoption of electric vehicles through innovative solutions, including leasing and rental services, especially for the last-mile delivery in the e-commerce and food-delivery industries.
Monika Beck, a member of DEG’s management board, added that DEG is supporting Bike Bazaar’s growth to drive financial inclusion among underserved demographics and SMEs, with a specific focus on electric mobility opportunities in India. George Mathew, MD and CEO of Haitong Securities India, the financial advisor for Bike Bazaar, noted that the company’s founders and management team have made it a pioneer in two-wheeler financing and have positioned it to support the adoption of EVs in India.
According to Bike Bazaar’s market outlook for the two-wheeler industry, sales are expected to surpass 1.7 crore units in the 2022-23 financial year, with a 20% growth in the first three quarters of the last year, driven primarily by the tier-II and III markets.