cKers-OTO to Promote Electric Two Wheelers Leasing in India

Currently, under-18 riders are allowed to ride electric scooters without a license. Although the government issues license to these riders for less-than-50cc engine bikes, the market has no such small capacity two-wheelers.

cKers Finance, an NBFC focused on financing sustainability and clean energy projects has announced a debt financing tie-up with OTO Capital, an alternate finance startup for two wheelers, for its two-wheeler electric vehicles (EV-2Ws) leasing program. cKers has set-up an initial line of INR 30 million for OTO. This facility will be used by OTO to purchase EV-2Ws in India, which will then be deployed to the customers of OTO on flexible leasing models. This partnership aims to provide consumers with affordable and flexible financing options to own electric two wheelers.
With India being in its nascent stage of EV adoption, financing options are limited and not available at all dealerships and that hinders mass adoption, however lately some of the forward looking businesses are coming out with interesting and easier methods of EV adoption, vehicle leasing being one such adoption model. The convergence of cKers and OTO Capital is a first-of-a-kind model to finance EV purchase. Through this initiative, both brands will offer customers a hassle-free experience of purchasing electric vehicles. The partnership allows customers to save up to 30% in their monthly installments by choosing the OTO Monthly Installment plans (OMI). The minimum tenure for the leasing program stands at 12 months, which can be increased up to 36 months. Customers have the option to purchase the electric two wheelers by paying the balance cost at the end of the program or upgrade to a newer model.

Speaking about the facility, Deepak Gupta, Business Development Head, cKers Finance said, “Electric two wheelers have still not penetrated the Indian two wheeler market and constitute less than 1% market share of two wheelers sold each year. The primary reason for that is EVs are still 1.5-2x costlier than other vehicles, though these costs are steadily declining. Additionally, debt providers face a challenge while financing EVs due to the lack of an established resale market in India. The OTO Capital partnership helps mitigate both these factors for vehicle owners relating to lack of financing and resale of EVs. This gives us the comfort to provide a finance line exclusively for purchase and deployment of electric two wheelers and push towards adoption of a cleaner mode of transport.” Talking about the transition of Indian two wheeler market, Sumit Chhazed, Co-founder, OTO Capital said, “We are excited to partner with cKers’ to support the adoption of electric two-wheelers in India. Since the cost of EVs is steadily reducing in India we aim to provide our customers the best pricing with flexibility to ease their buying experience. With that in mind, we have an innovative financing plan where customers spend less on monthly EMIs while having the flexibility in choosing the tenure of the lease plan. The founding team at OTO has prior experience in the two wheeler resale market, which helps us provide the best value to our customers should they choose to purchase the vehicle at the end of the lease tenure.”

The automobile industry is also seeing green shoots of recovery amidst the pandemic. Consumers are showing preference to owning a vehicle than using public transport and shared mobility. OTO Capital has seen a 120% increase in the demand for vehicle leasing in the last few months. There is a visible shift in vehicle-purchasing behaviour as consumers are seeking more ‘conservative’ alternatives such as vehicle financing and leasing as alternatives to auto loans. Jayant Prasad, Executive Director, cKers Finance added that, “Within the e-mobility sector, we partner with companies that showcase a strong business model, proven unit level economics and track in raising institutional equity. Such borrowers can use our debt for building their fleets of EVs, batteries or charging infrastructure. Our understanding and research about the developments in the EV ecosystem enable us to confidently foray into the new upcoming segments with limited track record.”

While cKers has been financing clean energy and clean mobility in the past, this unique financing line aims for faster adoption of clean mobility for personal transport. The NBFC remains bullish about the growth in the EV ecosystem and is confident about the growth prospects that it will create for the Indian economy.

About cKers Finance Private Limited
cKers Finance (pronounced ‘seekers’) ( is a specialized Sustainable Energy (SE) finance company that operates in the rapidly growing segments around clean energy, eMobility and energy efficiency. Established in 2017, cKers specializes in making project finance viable at a small scale for decentralized renewable energy; and develops innovative asset-backed financing approaches. It is also supporting standards for sustainable energy bonds and building data around risk metrics for new segments.

About OTO Capital
OTO offers a new mode of financing for automotive purchases (cars and two-wheelers) and is targeted at retail customers. OTO finance plan features OMIs (Ownership Monthly Installments) which are 30% lower than EMIs and a low, refundable down payment. Founded in 2018 by IIT-Mumbai alumnus Sumit Chhazed and Harsh Saruparia, OTO partners with Banks and NBFCs to provide the capital offers customers with an alternative option for financing their vehicles. OTO provides a full auto-lifecycle management, from credit underwriting to insurance, maintenance and eventual resale of the vehicle.