WheelsEMI Pvt. Ltd is a specialist lender focused on used two-wheeler financing.
Bengaluru, 10 Dec, 2018. RedNewswire/-
WheelsEMI, run by non-banking financial company WheelsEMI Pvt. Ltd, is a specialist in financing pre-owned Two Wheelers. Using a proprietary underwriting tool, WheelsEMI is able to sanction loans to customers with bare minimum documentation.
The company was founded by former senior Bajaj Auto executives Srinivas Kantheti, Karunakaran Vadakkepat, CH Phaneendra Kumar and Ratheesh Bharathan in 2017.
It has raised $14Mn (₹100 crore) in Series B round of funding led by Faering Capital, a mid-market-focused private equity (PE) firm founded by Aditya Parekh and Sameer Shroff. Existing investor Elevar also participated in the round.They will go deeper in the cities they are already in and will also expand to new cities. The funds raised will be used to expand its network to 50-60 cities in the next few years.
They will close the year with around Rs 120 crore of assets under management. Today, they are present in nine cities including Mumbai, Bangalore and Pune.
This is the fourth investment from the Faering Capital PE firm’s second fund. Its earlier investments include small finance bank Utkarsh, forex company BookMyForex and packaged foods company Prataap Snacks.
“We have led a Series B round of Rs 100 crore in Wheels EMI. Faering has invested Rs 64 crore, while the rest was invested by existing investor Elevar. WheelsEMI is a pioneer in the pre-owned two-wheeler space, which is a large market with 17-18 million used two-wheelers being sold in the country,” said Faering Capital’s co-founder and managing director Aditya Parekh, who is the elder son of HDFC Group chairman Deepak Parekh.
For Faering, the investment in WheelsEMI is an attempt to tap the growing demand for pre-owned vehicles. “In addition to it, being a financial services play, what we are excited about is the rapid consumption growth in India. There are two major drivers for two-wheeler growth. One, is increasing urbanization and people buying their first vehicle. Two, is the rise of the delivery culture in India—food delivery, e-commerce delivery,” said Shroff, who is also a co-founder and managing director at Faering Capital.