Using non-convertible debentures (NCDs), Perpetuity Capital, a fintech business with a cleantech mobility focus, has successfully raised Rs 7 crore. Leading debt funds N+1 Capital and RevX Capital, which are renowned for helping small and medium-sized businesses (SMEs) and financial institutions, spearheaded the investment round.
Enhancing Lending Capabilities for EV Adoption
The new capital will be used to improve Perpetuity Capital’s credit capabilities and grow its loan book, with a focus on encouraging the adoption of electric vehicles (EVs) in the eastern states of Jharkhand and Bihar.
“Our capacity to offer financial solutions that encourage the adoption of clean mobility will be greatly enhanced by this funding, ultimately leading to a more sustainable, greener, and inclusive future,” CEO Karamveer Dhillon stated.
Digital Lending Platform for EVs
Established in 2017, Perpetuity Capital is a digital lending platform that links consumers with banks and non-banking financial institutions (NBFCs) to enable loans for two- and three-wheel electric vehicles (EVs) for both passenger and freight applications. The platform provides fast loan processing, with a maximum loan term of five years and processing times of 24 to 48 hours. Up to 95% of the EV’s ex-showroom price may be borrowed by borrowers, with the car being hypothecated to Perpetuity Capital until the loan is paid back. Deliveries and autorickshaw drivers looking to finance EVs for business use make up the majority of the clientele.
Investor Insights
“Purchasing Perpetuity Capital is an investment in inclusive and sustainable development. We have faith in their ability to change the mobility landscape in Jharkhand and Bihar. Our partnership seeks to expedite the uptake of clean technologies in these domains,” stated RevX Capital’s Director of Investments, Sushant Bhatia.
“Perpetuity Capital’s focus on cleantech mobility aligns perfectly with our investment philosophy of supporting ventures that drive positive environmental impact,” said Akshay Saini, vice president of N+1 Capital. We are honoured to work with them and encourage their expansion in important Indian regions.
Previous Funding and Future Plans
Last October, Perpetuity Capital obtained a debt of Rs 5 crore from Clime Finance. The company is well-positioned to increase its influence and reach in the EV financing sector, especially in underserved areas, with the additional infusion of Rs 7 crore.
The Growing EV Financing Market in India
The Indian government’s efforts to encourage the use of electric vehicles (EVs) and lower carbon emissions have set the stage for significant growth in the EV financing market. The Rocky Mountain Institute and NITI Aayog published a paper estimating that by 2030, India’s EV transition would have cost a cumulative capital of Rs 19.7 lakh crore ($266 billion). By the same year, it is anticipated that the yearly EV finance market size will have grown to Rs 3.7 lakh crore ($50 billion).
Final Thoughts
The recent investment success of Perpetuity Capital highlights how crucial EV finance is becoming to India’s shift to sustainable mobility. Perpetuity Capital is poised to play a pivotal role in facilitating the adoption of sustainable mobility solutions in Bihar and Jharkhand, thereby advancing a more environmentally conscious and equitable future, through the enhancement of its lending capacity.
Read more: Marketing News, Advertising News, PR and Finance News, Digital News
