Magenta Mobility Secures Debt Financing from SIDBI for EV Deployment in Delhi NCR

Magenta Mobility debt financing

Magenta Mobility, a provider of electric mobility and EV charging solutions has secured debt financing for about 350 EVs under the Green Finance Scheme by the Small Industries Development Bank of India (SIDBI). The loan received from SIDBI will help to scale up deployment of Cargo Electric Vehicles for last mile deliveries across Delhi-NCR region.

Aligned with the national initiative of EV30@30, SIDBI’s “Mission 50K-EV4ECO” is poised to catalyze the local EV ecosystem by funding the procurement of 50,000 EVs in the country. This scheme intends to unlock the market by providing better financing terms and it is the precursor to EVOLVE Scheme by SIDBI-World Bank. The pilot phase of this mission focuses on promoting two, three, and four-wheeler adoption through both direct (to MSMEs) and indirect lending (to NBFCs). SIDBI has adopted EV as a priority and by launching “Mission 50K- EV4ECO” they intend to promote the entire EV value chain.

“SIDBI recognizes the immense opportunities that electric vehicles bring to the table and is committed to reinforcing the financial avenues that promote green asset creation. Under the Green Finance scheme, we are addressing financing challenges encountered by MSMEs and NBFCs in the EV ecosystem. We’re resolute in expanding financial avenues for green assets, aligning with our nation’s agenda for a carbon-neutral future. Magenta Mobility’s commendable efforts in shaping the EV sector are evident, and this loan underscores our mutual commitment to expedite EV adoption,” S Ramann, CMD of SIDBI quoted.

“We welcome the financial support provided by SIDBI through this loan,” said Maxson Lewis, Founder and Managing Director of Magenta Mobility.”  He added, “This initiative by SIDBI of offering better financing terms for the EV ecosystem, significantly addresses the existing challenges of high-interest rates and limited financing options prevalent in the EV sector. This collaboration with SIDBI aligns seamlessly with our commitment to ‘Electrifying & Decarbonizing Logistics in India.’ The infused funds will directly contribute to our efforts in procuring electric vehicles for the Delhi NCR region, a critical step in our journey to accelerate EV adoption across India.”

With a target of deploying 10,000 electric vehicles on Indian roads by 2024, Magenta Mobility continues its expansion by exploring new cities and enhancing its EV charging infrastructure network.

Recently, Magenta Mobility concluded a Series A1 funding round, which has rung in USD 22 million equity investment coming in from UK-headquartered bp and Morgan Stanley India Infrastructure-managed investment fund.