Three Wheels United & Eqaro Partnership with Log9 Materials For EV Financing

Log9 Materials & Three Wheels United partnership for EV financing

Access to EV financing is an issue multiple players are looking to tackle. Among the various deterrents to EV financing, a key challenge is the nascency of the technology, which has not only led to questions on the reliability and performance but also to an assumed zero residual value by the financing institutions. The uncertainty of the real asset value, added to the current unorganized financial policies and business models result in financiers averting loan requests, citing higher risks on returns. Another crucial challenge financiers face is the lack of an acclaimed guarantor, further adding to their reluctance to sanction loans for electric vehicles.

A recent initiative in this direction is the collaboration between Three Wheels United (TWU), a global fintech company for EV financing and Log9 Materials, an advanced battery-technology company. The two firms will work in partnership to offer financing solutions for batteries and EVs deployed through their OEM partners. Eqaro Guarantees will provide guarantees for the financing, with a view to bring a new lease of trust on commercial electric vehicles. As a part of the tri-party collaboration, over 500 three-wheeler electric vehicles will be deployed across Bengaluru, Chennai, Mumbai, and Delhi NCR over the next six months.

The RapidX 6000 and 8000 batteries by Log9, the firm claims, are India’s fastest-charging battery with a lifecycle of over ten years. These batteries are designed for harsh tropical climatic conditions and can operate in the extreme temperature range of -40 to 65 degrees Celsius, thus making them the safest in the Indian market.

Now backed by a surety bond by Eqaro Guarantees, fleet operators can avail financing options to purchase Log9’s RapidX 6000 and 8000 (catering to 3Ws) batteries and its range of e-3Ws deployed in association with their OEM partners. This surety bond will guarantee a residual value for commercial electric 3Ws, which promises assurance for the financiers to grant purchase loans.

Along with assisting with finance, Three Wheels United will also provide support for the seamless operation of the EVs and access to relevant EV-related information through their mobile app for drivers. Log9 Materials will offer maintenance and servicing of the batteries and vehicles, ensuring minimal downtime for operations.

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