{"id":167856,"date":"2025-04-02T08:28:33","date_gmt":"2025-04-02T08:28:33","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/ev-financing-startups-charged-up-over-electric-commercial-vehicles-et-brandequity\/"},"modified":"2025-04-02T08:28:33","modified_gmt":"2025-04-02T08:28:33","slug":"ev-financing-startups-charged-up-over-electric-commercial-vehicles-et-brandequity","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=167856","title":{"rendered":"EV financing startups charged up over electric commercial vehicles, ET BrandEquity"},"content":{"rendered":"


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\"<p>Representative
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At a time when consumer lending startups are struggling to find stable ground, fintech firms focused on financing electric commercial vehicles<\/a> are seeking to accelerate growth.<\/p>\n

Fintechs like Revfin<\/a>, Vidyut Tech<\/a>, Turno<\/a> and Ascend Capital<\/a> see opportunities to capture market share<\/a> given traditional non-banking finance companies and banks are not yet active in funding electric vehicles being used for commercial purposes.<\/p>\n

Electric three-wheelers<\/a> used for intracity commercial deliveries and logistics<\/a> are a “sweet spot” being targeted by these fintechs, said Harsh Gupta, principal at Flourish Ventures. “…this market is growing fast with almost 25 per cent of such vehicles in a few of the large cities having already moved to EVs.”<\/p>\n

Flourish recently invested $2.5 million in VidyutTech, a Bengaluru-based EV financing startup. Gupta believes there is a short window for fintechs to build expertise in the sector before traditional financial institutions sharpen their focus on this segment.<\/p>\n

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While traditional lenders are mostly financing purchase of passenger vehicles by underwriting the customer, fintech startups are trying to underwrite these battery-run vehicles through innovative means.<\/p>\n

New models<\/strong><\/p>\n

VidyutTech operates as a pay-as-you-use service for the battery, thereby reducing the upfront EV purchase cost for the consumer by 20-25 per cent.<\/p>\n

“For any EV, the cost difference with a combustion engine vehicle is the price of the battery. If a customer pays for the battery through instalments just like fuel costs, it reduces the financial burden on a commercial vehicle owner,” said a senior industry executive who has tracked the sector closely. Founded in 2021, VidyutTech has raised $17 million over multiple funding rounds.<\/p>\n

Revfin, another major player in this space, initially funded e-rickshaws mostly powered by lead-acid batteries. Now the Gurugram-based startup is supporting three-wheelers that use lithium-ion batteries.<\/p>\n

“We get around 40-45 per cent of our business from fleet owners. The vehicles are owned by us but leased to these platforms; this helps us track their usage and monitor repayments effectively as well,” said Revfin chief executive Sameer Agarwal.<\/p>\n

Revfin, which has raised around $30 million, is looking for another $15-20 million and is in talks with investors.<\/p>\n

The company has its own NBFC through which it lends to customers.<\/p>\n

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