ZestMoney: Massive Demand for Pay Later option on EVs

ZestMoney has been observing a higher demand, a 500% growth in customers opting for the Pay Later solution for Electric Vehicles (EVs).

Due to COVID-19 and the need for social distancing, Zestmoney has observed a 500% month-on-month growth in customers opting for the Pay Later solution for Electric Vehicles (EVs). The company is India’s leading AI-driven EMI financing and “Buy Now Pay Later” (“Pay Later”) platform.

The vehicles are low-cost as well, which is another reason for customers to opt for these rides. As tallied by ZestMoney, Uttar Pradesh provides 30%  of the total business from EV. The state is followed by Bihar, Rajasthan and Maharashtra and the age-group of 25-35 is the one which buys these scooters the most. It is interesting to see that EVs are gaining increasing traction in Tier II, III and IV towns where many new-to-credit customers are opting for the convenience of Pay Later solutions. These markets are driving 70-80% of the total demand.

Lizzie Chapman, CEO & Co-founder at ZestMoney, when commenting about the development said, “The pandemic has augmented the demand for electric vehicles with people wanting to skip public transportation. At ZestMoney, we see a massive opportunity in financing for this segment, particularly in smaller towns where customers may not have a past credit record or a traditional credit score. 

Our Buy Now, Pay Later solution offers them the perfect flexibility to spread the cost which is great financial planning too. Since many are availing credit for the first time, we are helping them build their credit score for large ticket loans they may need later. The EV industry is taking shape and we at Zest strongly believe that despite COVID-19, FY 20-21 will be a defining year for the EV segment.”

By just completing their digital KYC, which can be done online or in-store, the customers can get a credit limit from ZestMoney. They are then free to choose a repayment plan of their choice at the time of purchase. This is a completely paperless and end-to-end digital process and needs no manual intervention. ZestMoney eliminates the need for a guarantor and any pre-closure fees.

They have partnered with Original Equipment Manufacturers (OEM) of EVs to finance their vehicles through their dealership network. Any customer that visits these approved dealerships to purchase an EV, can avail the financing option offered by ZestMoney. The company is also associated with over 20 marquee brands in the EV space, including Hero Electric, Revolt, Okinawa, YObykes, Tunwal, BattRE, EeVe India among others.