Bike Bazaar gets $10m to rev up India’s rural two-wheeler market

Bike Bazaar co-founders Srinivas Kantheti (left) and Karunakaran Vadakkepat / Photo credit: Bike Bazaar

India has one of the world’s largest two-wheeler markets, with an estimated value of around US$16 billion in 2022 and projected to reach US$26.6 billion by 2028, according to Research and Markets.

Bike Bazaar, which specializes in two-wheeler financing, predicts that two-wheeler sales in the South Asian country could reach 17 million units in FY 2023, driven by strong demand in lower-tier markets. 

To accelerate its expansion, the startup has snapped up an additional US$10 million from Germany’s DEG, closing its series D round at a total of US$30 million.

Bike Bazaar will use the new capital to penetrate deeper into the rural Indian market, in addition to doubling down on electric-mobility financing for both end consumers and businesses. The company plans to diversify its offerings from financing and leases to rental solutions.

Bike Bazaar’s co-founders, Srinivas Kantheti and Karunakaran Vadakkepat, both have extensive experience at Bajaj Auto, one of the top two-wheeler manufacturers in India.

The company added that it has served over 326,000 customers across 140 locations in India since the firm was established in 2017. Its assets under management are predicted to reach 10 billion rupees (US$121.2 million) by the end of FY 2023.

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