Bike Bazaar Halts Lending Due to Credit Crisis
Two-wheeler finance startup Bike Bazaar has stopped all new lending and faced a credit rating downgrade. Over a third of its loan portfolio is now either non-performing or already sold off as distressed debt.
Pune, India – Two-wheeler finance startup Bike Bazaar has ceased new lending operations, halting all disbursements from December 2025 due to a rapid deterioration in its loan book. Credit rating agency ICRA downgraded Bike Bazaar to BBB status last month, flagging it as a high-risk borrower.
The move comes as more than a third of its portfolio is now either non-performing or has been sold off as distressed debt. According to an ICRA report, the startup is in talks with a "strategic investor" for a potential revival, though market conditions currently make this prospect uncertain.
The financial strain has also impacted its securitisation processes, where loans are pooled and sold to other investors. On June 25, 2026, ICRA downgraded multiple securitised loan issuances, citing deteriorating performance of the underlying loan pools and Bike Bazaar's weakened financial standing.
Bike Bazaar's gross stressed assets, including non-performing loans and debt sold to asset reconstruction companies, surged from 8% of its portfolio in March 2024 to 38.1% by March 2026. The company has also begun to restructure its corporate holdings. Bike Bazaar has not responded to requests for comment regarding the situation.