WheelsEMI P Ltd

Name: Akshay Subramanian K

Registration Number: 2212707
Programme: Bcom International Finance
 Chapter 1
COMPANY PROFILE
Industry Profile
The two-wheeler (2W) financing market experienced significant growth before the COVID-
19 pandemic as 2W adoption growth rates were on the rise in India. Origination value and
volume increased steadily between FY 2017 and FY 2020, but the pandemic had such a
negative impact on 2W market sales in FY 2021 that it hampered the 2W financing market in
India. After FY 2021, the 2W financing market is headed towards returning to pre-COVID-
19 levels as the electric (e2W) market expands and most banks and non-bank financial
companies (NBFCs) have started lending to electric vehicle (EV) consumers.

NBFCs have dominated the Indian 2W loans space, with a share of more than 50%. NBFCs
have maintained a larger market share because of flexible formalities and the availability of
larger loans. However, because of changing market dynamics, increasing electrification,
emerging fintech, and better private banking services, NBFCs have lost market share since
the COVID-19 pandemic began.

The 2W financing market targeted commuter and premium 2Ws with a ticket size between 1
CC and 110 CC (i.e., more than 1.5 liters). As consumer demands for new models with better
features have increased, market share has shifted significantly from the commuter segment to
the 2W mid-segment, with 126 CC to 150 CC and 150 CC to 200 CC 2Ws in 2021.
Additionally, ticket sizes above 1.5 liters have decreased because mid-segment 2W models
with similar features are now more affordable.

Irrespective of the current dip in two-wheeler sales due to rising petrol costs and the ongoing
pandemic, the sales are expected to pick up rapidly in FY 2022-23. Moreover, the forecasted
market trends and developments in India’s two-wheeler loan market are encouraging.
Further, the latest trends, such as digitalization and new business models, have helped
financial institutions reach customers in rural and semi-urban areas across India and cater to
their increasing demand.
Company Profile
Bike Bazaar aims to provide a range of affordable solutions and hassle-free experiences along
the two-wheeler lifecycle. These include financing to purchase new and pre-owned two-
wheelers, access to green bikes, insurance, and a transparent marketplace for buying and
selling preowned two-wheelers.

Bike Bazaar’s proposition is founded on the principle of vehicle lifecycle management. The
company plans to serve customers at various points of the vehicle lifecycle and build long-
term relationships by offering multiple services. It has built a strong foundation through its
lending business that addresses both used and new two-wheelers. This foundation has helped
the company build traction amongst its customer base.

Bike Bazaar is building partnerships with other players in the ecosystem, such as OEMs, used
two-wheeler dealers, marketplaces, and more to further enhance its reach and support to
customers.

This lifecycle management

approach drives a higher customer
lifetime value at a lower customer
acquisition cost through solution-
oriented offerings and a strong
customer connection. Starting its
operations in April 2017,
WheelsEMI Private Limited is an
RBI-registered finance company that specializes in retail financing of Pre-Owned & New
Two-Wheelers. Bike Bazaar Finance is the brand name of WheelsEMI Private Limited.
 
Bike Bazaar Finance has emerged as the pioneer in financing pre-owned Two Wheelers and
after adding New two-wheeler finance in its product gamut, it has become a two-wheeler
finance specialist in the country.
 
The core of Bike Bazaar Finance is on Impact Funding meaning funding such customers in
the Customer Pyramid wherein the ownership of a two-wheeler makes an impact in their lives
and owning the vehicle is just not about adding convenience.
Today, we are a family of over 2 Lakh customers across India; and have successfully
disbursed loans of more than INR 940+ crores.
 
Currently, we are operational across 117 Cities which include major Metros such as Pune,
Bangalore, Chennai, Hyderabad, Mumbai & Delhi. We are also planning to spread our
footprint across 200 cities in PAN India within the next three years.
Vision
Make an impactful and affordable statement for unbankable Indian customers.

Mission
Our mission is to become the most trusted company in the Pre-Owned Two-Wheeler market.
We strive to position ourselves as a one-stop destination for buyers and sellers of Pre-Owned
Two-Wheelers.

Objectives and strategies

Being in the whole lifecycle of a customer. It aims to provide a range of affordable solutions
and hassle-free experiences along the two-wheeler lifecycle. These include financing to
purchase new and pre-owned two-wheelers, access to green bikes, insurance, and a
transparent marketplace for buying and selling preowned two-wheelers. The company's
proposition is founded on the principle of vehicle lifecycle management. The company plans
to serve customers at various points of the vehicle’s lifecycle and build long-term
relationships by offering multiple services.

Policies and procedures followed

 Credit Policy-A credit policy determines which clients are eligible for credit from
your company and outlines how you’ll collect unpaid debts. Credit policies are
important because they keep your clients accountable and boost your cash flow.

 Risk Management Committee-The Risk Management Committee is responsible for

routinely reviewing the Company's risk management structure, procedures, and
practices to make sure the Company is taking the necessary steps to establish a
responsible balance between risk and reward in the company.
Milestones
 3 Lakh+ customers
 Loan book of 700 Cr
 1000 touchpoints in 750
cities

Product/Service Profile
Retail financing of old vehicles and new vehicles.
Multi-brand service of two-wheelers.
New two-wheeler financing.
B2B & B2C.
Electric two-wheeler loan.
Refinance of Vehicle.

Profile of the competitors

 CredR-is an online marketplace for listing and purchasing verified, pre-owned
vehicles at the fairest value. Founded in 2015
 HDFC Bank-HDFC Bank provides a number of products and services
including wholesale banking, retail banking, treasury, auto loans, two-wheeler
loans, personal loans, loans against property, consumer durable loans, lifestyle loan,
and credit cards. Along with this various digital products are Payzapp and SmartBUY.
 IDFC Bank-It announced the entry into the credit card sector with low-interest rates
and interest-free credit in 2021. The company also offers one of the highest interest
rates for saving accounts in the country, with an interest rate of 6%.
 Shriram Chit Fund- is the largest chit funds entity in India. The trusted household
Savings & Investments service provider, a pioneer in Micro Finance in India. The
inexorable growth registered by Shriram Chits in recent years not only indicates the
usefulness of this ancient instrument, but it is also a reflection of the customers' trust
in the Shriram Group. The Annual Auction Turnover of our Chit Companies is
touching Rs.3,000 crores.
 Hero-According to the Hero MotoCorp, the company through the Retail Finance
Carnival aims to promote accessibility, availability, awareness, and innovation in
retail finance for customers across segments. In addition to the main offers, the Retail
Finance Carnival also provides innovative financial products to customers, such as
Kisan Kisht, No Hypothecation, and Suvidha, which negates the use of any bank
cheques.
  Bajaj Finserv-Bajaj Finserv Limited is an Indian non-banking financial
services company headquartered in Pune. It is focused on lending, asset
management, wealth management , and insurance. It is a financial conglomerate with
stakes in the financing sector (Bajaj Finance), the life insurance business (Bajaj Life
Insurance), and the general insurance business (Bajaj General Insurance).

Suppliers Profile
The company mainly gets its fund from two simple sources which we all have studied in our
earlier grades. As mentioned earlier, the company has undergone 4 rounds of funds from big
investors such as Elevar Equity, Faering Capital and Women’s World Banking, and also from
high profile individuals, shareholders, etc. The two main sources of funds for the smooth
functioning and cashflow of their business are:
1. Equity
2. Debt