9 EV Financing Startups in India Accelerating EV adoption

The electric vehicle (EV) revolution in India is gaining momentum, driven by technological advancements, environmental consciousness, and government initiatives. With growing awareness of its benefits, electric vehicles (EVs) are emerging as a promising choice for prospective vehicle buyers. In the first half of CY2023, the EV sales crossed the 100,000-unit mark on average each month, as per government ‘Vahan’ data. As the demand for EVs continues to surge, the need for reliable financing options becomes crucial for the sustenance of the sector.

As per CEEW, nearly 77 per cent of all vehicles in India are financed through banks and non-banking financial corporations (NBFCs), though this share varies across different segments. Multiple sources demonstrate that commercial vehicles, three-wheelers, and two-wheelers are some of the leading segments in terms of credit borrowing in India.

The EV ecosystem has spawned financing firms and startups as well, considering the specialised nature of the work. Here are the some leading electric vehicle (EV) financing companies in India, playing a crucial role in bolstering the growth of electric mobility. These companies provide innovative solutions to make owning an EV accessible and affordable for both individuals and businesses.

#1 Vidyuttech

Headquartered in Bengaluru, Vidyuttech is a digital platform that offers flexible EV financing solutions and assured resales of small commercial EVs. The firm was founded in 2021 by Kothi and Gaurav Srivastava.

It caters to commercial vehicle fleet owners by providing them with EV financing and ownership plans that take away the risk of owning a battery. Commercial vehicle owners can buy vehicles without owning the battery, thereby paying less upfront for an EV, even in comparison with diesel-powered vehicles.

Using battery health data and its proprietary underwriting model, VT manages to extract a high residual value for EVs, helping customers get an effective interest rate of 7 per cent. This is almost on par with the ROI offered by PSU banks for conventional vehicles with an internal combustion engine (ICE). While the firm is not in the passenger vehicle segment, however, in the long term, it plans to offer financing for retail passenger vehicles as well.

The company has partnered with several notable EV makers Mahindra, Altigreen, Euler Motors and OSM to provide what it claims is a one-of-a-kind vehicle ownership solution for commercial vehicle owners. Vidyut Tech, in December last year, raised $4 million in a mix of equity and debt in a round co-led by Force Ventures, Veda VC, and a clutch of strategic angels in the clean energy space.

#2 ALT Mobility

The Alt Mobility platform provides a comprehensive solution for fleet lifecycle management, encompassing leasing, insurance, and service management. The firm has forged partnerships with several firms in the sector including Altigreen, Piaggio, Electric One, and Euler. While the firm offers leasing services to two and three-wheelers, the service for four-wheelers will be extended soon, the company website shows.

Starting its operations with 80 EVs in March 2022, the firm has deployed over 4,300 EVs across seven cities, with eight OEM partners and nine finance partners.

Recently, Alt Mobility signed an agreement to lease 1000 Altigreen neEV Tez electric 3-wheelers, powered by Exponent. As per the agreement, Alt Mobility is offering 5-year financing with a 30 per cent lower EMI, compared to the industry standard of 3 years. Last year, the firm launched Elektrowagen, a structured finance solution. Under this structure, the company has signed MoUs with two non-banking financial institutions (NBFCs) focused on electric vehicle financing for a commitment of USD 25 million.

#3 OTO

OTO is an online two-wheeler retailing startup, which provides support with the financing and ownership of two-wheelers. The start-up caters to things like home trails of two-wheelers, online purchases, financing, and other formalities for a host of different two-wheeler manufacturers.

One of its most interesting business models is the two-wheeler leasing option. Consumers can easily purchase an electric two-wheeler and keep paying EMIs until they choose to use the vehicle, after which they can trade in the vehicle. This option provides flexibility for first-timers to try their hands out on an EV for a few months and see if using them is practical for them. This coupled with OTO’s up to 35 per cent lower EMI costs makes EV ownership much easier, and more flexible.

OTO tied up with several NBFCs and funds such as Trillionloans Fintech, Grow Money Capital, Western Capital Advisors, and Northern Arc Capital, among others. Recently, the tech innovation-led start-up Matter partnered with OTO to provide consumers with affordable and flexible vehicle financing options for its motorbike, AERA. Last year, BLive, a multi-brand EV store with an online and offline presence, also partnered with OTO Capital for the sale, marketing, and promotion of multiple electric 2-wheeler EV brands on lease models on the BLive platform.

#4 Revfin

Established in 2018, Revfin is one of the leading digital consumer lending platforms that aims to improve financial inclusion in India. The company offers financial products to buyers of electric two-wheelers (e2Ws), electric three-wheelers (e3Ws), the L5 category and small fleets through original equipment manufacturers (OEMs). The firm claims that it has less than 2 per cent of non-performing assets (NPAs).

Recently, Revfin has expanded its services to the 4W EV segment by partnering with Zappit for airport pick-up services. It has also collaborated with other EV manufacturers and leasing companies, broadening its financing options and creating a micro secondary market for EVs.

Last month, Revfin raised $5 million from the US International Development Finance Corporation (DFC) as it intends to introduce new products by diversifying into two-wheelers for last-mile deliveries, four-wheelers for mid-mile cargo delivery, and ride-share taxis with the fresh funding. The Delhi-based company aims to finance 2 million electric vehicles in the next five years.

#5 Ascend Capital

Jaipur-based electric commercial vehicle (eCV) financing firm Ascend Capital is a leading financial services company that offers comprehensive financing solutions for electric vehicles. Cofounded in 2019 by Lokesh Chandra Mittal and Gaurav Maheshwari, the company has so far invested about Rs 80 crore in its own business and has financed over 8,000 commercial EVs.

Ascend Capital provides end-to-end support throughout the financing process, ensuring a seamless experience for individuals looking to purchase EVs. The company offers competitive interest rates, flexible repayment options, and personalized assistance to meet the unique needs of its customers.

The firm is planning to raise Rs 500 crore over the next 18 months as it looks to finance over 1 million electric commercial vehicles by 2030.

#6 Rupyy

Rupyy, a financial technology company and part of the CarDekho Group has recently entered the electric vehicle financing segment. Rupyy says it will finance up to 100 per cent of the on-road price for select EV customers.

Rupyy has partnered with original equipment manufacturers (OEMs) and multi-brand outlets (MBOs) in the EV industry to become one of the major EV financing companies that offer flexible and accessible EV loans to customers.

The brand has done key strategic tie-ups with prominent EV manufacturers and MBOs such as Pure EV, Trinity, Blive – MBO, Tork, Jitendra EV, Hero Electric, Electric One – MBO, Hop Electric, Ampere, Hero MotoCorp, to cater to the growing demand for EV financing. With such industry collaborations, Rupyy can enable a seamless loan experience for a wide segment of consumers.

#7 Mufin Green Finance (MGF)

Mufin Green Finance (MGF) is among the prominent companies in the EV financing space with its presence across 14 Indian states. The company specializes in providing financing solutions for electric two-wheelers, three-wheelers, and four-wheelers. MGF offers competitive interest rates, flexible repayment options, and quick loan disbursals. With its focus on sustainability and clean energy, MGF aims to promote the adoption of EVs and contribute to a greener future. All this while keeping the NPAs as low as 1.92 per cent, the firm claims.

In terms of states with respect to loans, the highest loans disbursed by Mufin Green Finance were in Uttar Pradesh where around 9000 loans were disbursed with around 74crs in AUM. Recently, Muffin Green partnered LoanTap Financial Technologies Private Limited to drive the growth of electric two-wheeler financing. The firm also partnered with IREDA with plans to reach 5000 consumers initially, and the ultimate goal to reach 1,00,000 by extending the partnership and also reducing the borrowing cost by about 40 per cent.

#8 Ecofy

Ecofy is an emerging player in the EV financing space, focused on providing affordable and accessible financing options for electric vehicles. The company offers hassle-free loan approvals, minimal documentation, and attractive interest rates. With its commitment to promoting sustainable mobility, Ecofy aims to accelerate the transition to EVs by making financing options more accessible to a wider audience.

Ecofy recently partnered with Piaggio Vehicles (PVPL), a leading manufacturer of small commercial vehicles, to provide financial assistance to individuals and corporations on electric three-wheelers.

#9 Greaves Finance

Greaves Finance, a subsidiary of Greaves Cotton Limited, is a well-established player in the EV financing sector. The company provides customized finance solutions for a wide range of electric vehicles, including e-rickshaws, e-carts, and e-bikes.

Greaves Finance offers attractive loan terms, simplified documentation processes, and personalized customer service, making it easier for individuals and businesses to switch to electric mobility.

Last month, Greaves Finance Ltd has introduced a financial platform called “evfin”. The platform aims to assist in EV financing and more.