ZestMoney, an AI-driven EMI financing platform, has reported a 500% month-on-month growth in customers opting for the Pay Later solution for Electric Vehicles (EV). The number of EV dealers on ZestMoney’s platform has increased from 300 in July to 4,500 in November. ZestMoney has observed that Uttar Pradesh contributes 30% to the total business from EV, followed by the states of Bihar, Rajasthan and Maharashtra. The purchases are largely within the age group of 25-35, with 10% of women opting for electric scooters.
The firm also states that EVs are gaining traction in tier II, III and IV towns where many new-to-credit customers are opting for Pay Later solutions. These markets are driving 70-80% of the total demand.
Low-speed electric scooters, which are restricted to 25 km/h and hence do not need registration with the transport authorities, constituted 90% of all the electric two-wheelers sold in FY19-20. ZestMoney is one of the first finance platforms in India that cover electric two-wheelers that need not be registered.
At ZestMoney, we see a massive opportunity in financing for this segment, particularly in smaller towns where customers may not have a past credit record or a traditional credit score. Our Buy Now, Pay Later solution offers them the perfect flexibility to spread the cost which is great financial planning too, Lizzie Chapman, CEO & Co-founder at ZestMoney said.
Since many are availing of credit for the first time, we are helping them build their credit score for large ticket loans they may need later. The EV industry is taking shape and we at Zest strongly believe that despite COVID-19, FY 20-21 will be a defining year for the EV segment, Chapman added.
ZestMoney partners with EV manufacturers and finance their vehicles through their dealership network. Any customer that visits these approved dealerships to purchase an EV, can avail of the financing option offered by ZestMoney. The company is associated with over 20 marquee brands in the EV space, including Hero Electric, Revolt, Okinawa, YObykes, Tunwal, BattRE, EeVe India, among others.
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