News · Financial Services

Bike Bazaar halts lending, seeks strategic investor

What they do

Bike Bazaar provides loans for two-wheelers and runs a marketplace for new and used bikes

It stopped all new disbursements in December 2025, and ICRA downgraded its rating to BBB in June 2026

Over one-third of its portfolio is delinquent or sold as distressed debt, and the company is seeking a strategic investor for revival

Bike Bazaar halted all new disbursements from December 2025.
ICRA downgraded its rating to BBB in June 2026, classifying it as a high-risk borrower.
Over one-third of its portfolio is delinquent or has been sold as distressed debt.
The company is seeking a strategic investor for revival.
ICRA downgraded multiple PTC issuances across five trusts on June 25, 2026.
Shareholders approved transferring up to 100% equity in subsidiary Bluebird Auto Trade to existing shareholders in February 2026.
Bike Bazaar failed to meet financial, operating, and rating-linked promises it made to lenders.
Bike Bazaar offloaded ₹179 Cr of stressed assets (11% of AUM) to an ARC in FY25.

Gross stressed assets rose from 8% in March 2024 to 38.1% by March 2026.
30+ days past due loans jumped from 5.2% to 19.8% of AUM in one year.
The loan book shrank 40% from ₹1,455 Cr to ₹839 Cr in one year.
FY26 loss was ₹45 Cr compared to a ₹3 Cr profit in FY25.
The company has about ₹44 Cr free cash but faces ₹100 Cr debt repayments due in three months and ₹222 Cr in six months.

Bike Bazaar provides two-wheeler financing to customers.
It also runs Bluebird Auto Trade, a marketplace for new and pre-owned two-wheelers.
At peak, it had over 1,000 touchpoints across 140 cities.
In FY24, it disbursed ₹1,185 Cr in loans to 1.74 lakh customers, up 42% from the previous year.
UP and Bihar accounted for 52% of its AUM as of June 2025.
It acquired Vardnarayan Savings and Investment Co, a small finance company in Nanded, Maharashtra, with a ₹35 Lakh loan book.