Electric vehicle financier RevFin is looking at raising INR 300-400 crore in this financial year for disbursing loans to buy two-wheelers, three-wheelers and four-wheelers deployed for commercial use.
The company, which received its first tranche of USD 5 million (about INR 41 crore) from the United States Development Finance Corporation earlier this week, expects strong demand for loans, driven by high fuel prices, incentives given by the central and state governments and renewed emphasis by e-commerce companies to electrify their last-mile delivery fleets.
Sameer Aggarwal, founder of RevFin, which has been financing purchase of electric vehicles (EVs) since 2018, said the market has recognised the need to move to EVs and even if the government were to stop incentives under its flagship Faster Manufacturing and Adoption of Electric Vehicles (FAME II) scheme, demand momentum will remain due to their substantially lower running costs.
“The personal buyer may be impacted by the tweaks that have taken place recently. We are primarily focused on the commercial space,” said Aggarwal. “A two-wheeler rider saves INR 4,000-5,000 every month in petrol costs when using EVs. Even if vehicle costs were to go up by INR 1,000 per month, it will still be cheaper to use electric two-wheelers.”
