Embracing electric vehicles (EVs) is crucial for a sustainable future, but financing EVs has been a challenge for dealers, manufacturers, and lenders especially in Tier 2, Tier 3 and rural parts of India. This article explores a startup that engages with dealers, manufacturers, lenders and borrowers to make the process simple. This company is capitalizing on the growing demand for EVs. The government’s plan to phase out ICE vehicles by 2030 opens up a big market for electric 2 wheeler and 3 wheeler vehicles. The below graphs show the market of 2 wheeler and 3 wheeler EVs for the upcoming years.
Overcoming Financing Challenges: Navigating the world of EV financing is not without its hurdles. Dealers and manufacturers face difficulties in partnering with lenders, limited financing options, and technological gaps. These challenges result in long approval times and frustrating experiences for customers especially in Tier 2, Tier 3 and rural areas. Lenders also struggle with assessing risk and managing relationships with EV dealers effectively.
The Solution – Loan Origination
To address these challenges and simplify the EV financing process, a cutting-edge platform has been developed. With this platform, loan approvals become a seamless experience for customers. This platform offers a simple and user-friendly process for loan origination. It connects customers, dealers with multiple lenders through standardized partnership agreements, eliminating the complexities of seeking financing. AI based assessment model speeds up the loan evaluation process to just 5 minutes, and if approved disbursement happens in less than 48 hours ensuring quick access to funds for purchasing EVs.
Say goodbye to complex financing procedures. QR based efficient system is used to help borrowers repay with ease even on a daily basis which is a significant solution which is never seen before. Also, the company facilitates lenders by providing them with client access and ensuring prompt recovery through the use of IoT devices for EMI collection. Complex paperwork is eliminated in the process.
Unlocking Opportunities for Last Mile Logistics:
Recognizing the importance of last mile logistics providers in the EV industry, this platform enables swift financing solutions. It goes beyond traditional credit scores, considering factors like work experience analysis to extend loans to a wider range of borrowers.
Driving Market Growth:
This innovative platform arrives at a time of increasing demand for EVs. Supported by the Indian government’s commitment to phasing out gasoline-powered vehicles by 2030, it is poised to drive market growth. With substantial financial support for the EV industry, this platform is leading the way towards a sustainable and electrified future.
- The growing demand for EVs will create a large market.
- The Indian government announced that it plans to phase out all gasoline-powered vehicles by 2030.
- The Indian government is providing financial support to the EV industry which includes subsidies for the purchase of EVs, tax breaks for EV manufacturers, and investments in charging infrastructure.
- Company’s ability to secure EV financing for last mile logistics solution providers within minutes is a major competitive advantage.
- Company focuses on all systems including Loan Origination system, Loan Management & Collection.
- By leveraging their advanced technology, they provide loans to people without the need for CIBIL score by assessing the metrics based on the borrower’s work experience analysis.
- The launch of Finayo’s Electroboost, a 500CR fund in collaboration with its EV ecosystem partners including lenders, Axis Trust, Aeris, and OEMs, will serve as a significant margin driver for the firm.
- Company is capturing markets in the most populated states of India in Tier 2 and Tier 3 cities and hence lower competition.
- The company helps lenders by getting them access to clients and ensuring timely recovery by use of IOT devices for collection of EMIs.
- The firm has introduced daily collection system from the 3-wheeler borrowers which is not done till now in India.
- Having already established a presence in rural areas, the company will find it easier to expand into urban locations with the help of technology.
- The Indian government is still in the process of developing regulations for the EV market.
- There are a number of other companies that are developing similar financing solutions.
- The firm needs to differentiate itself from its competitors in order to be successful. This could be done by offering lower interest rates, or more flexible repayment terms.
The growth drivers outweigh risks making it a compelling investment. As the EV revolution gains momentum, this platform continues to lead the industry forward by providing accessible and efficient financing solutions. With their customer-centric approach and innovative technologies, they are driving the transition towards a sustainable and electrified future.
Title Image Credits: Atherenergy
ASK: $ 1M (received commitments of 0.5M)
Minimum Investment: $12,500
RISK: High Risk
Time Horizon: 4 years
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