IIT Delhi-based Alt Mobility, a commercial fleet leasing platform has announced the launch of 'Elektrowagen' - a structured finance solution to mobilise low cost debt finance from domestic and international financing institutions for electrification of CV fleets in India. Under the arrangement, the company has signed MoUs with two non-banking financing institutions (NBFCs) focused on electric vehicle financing for a commitment of $25 million over the next 12 months.
Co-founder & CEO of Alt Mobility, Dev Arora said, “We are announcing our first partnership with Mufin Green Finance and AMU Leasing, both of whom have been pioneers in the retail EV financing space and will be working with us to unlock B2B fleet leasing for electric two wheelers and LCVs. An estimated 80 percent of EV OEM sales are from B2B logistic and aggregation companies, seeking asset light, low cost, flexible and turnkey fleet solutions for switching their fleets to electric.”
“On one side we provide asset light logistic companies the ability to rapidly scale up to tens of thousands of EV fleets in months with a full stack EV leasing offering. On the other side, Alt’s debt aggregation platform aims to unlock access to hundreds of millions of dollars of debt through credit enhancement, asset underwriting, co-lending, redeployment assurance that is backed by our FleetOS fleet management platform, for financing institutions to participate in the rapidly growing demand from our partners,” Dev said.
Dev said that as the pace of fleet electrification grows and conventional pools of debt remain inaccessible, his company's plan is to actively work to unlock low-cost international development and impact capital for participating in India’s EV transformation. "We also hope GOI considers including EV finance under priority sector lending to give a boost to the sector,” Dev continued.
Pankaj Gupta, CEO of Mufin Green Finance said, “ We are excited by the demand Alt has been able to generate with B2B partnerships and a complimenting approach towards risk sharing and technology enabled asset management gives us enormous confidence as a lender.” Mufin is backed by Global leading impact funds, with more than Rs 100 crore disbursements in last 150 days in both retail & B2B consumers.
Nehal Gupta, Director at AMU Leasing said, “ With this partnership, we hope to jointly work with Alt to onboard new OEMs, expand customer segments and geographies and scale up our EV portfolio rapidly. The team’s expertise in the EV technology stack, skin in the game approach and collaborative synergies has given us a lot of comfort.”