Non-banking financial company Mega Corporation on Monday announced the launch of its EV-lending arm Lendingo. The new division will focus on EVs including EV batteries, rickshaws, and related ventures along with MSMEs in the EV ecosystem through loans, leases, and other financing instruments.
Speaking on the launch, Kunal Lalani, Managing Director, Mega Corporation said Lendingo will not only drive the adoption of electric vehicles but also create new opportunities for growth and innovation within the EV ecosystem.
The company said it will prioritize projects that contribute to reducing carbon emissions, promoting energy efficiency, and improving air quality as part of its commitment to sustainable finance.
Diversifying to EV lending will help Mega Corporation enhance its portfolio, ultimately increasing profitability and market share, said Joydeep Dutta, EVP & Business Head, Mega Corporation.
“Lendingo is poised to significantly boost the growth of Mega Corporation by expanding its retail lending operations. This diversification will enhance the corporation’s portfolio, ultimately increasing profitability and market share,” said Dutta.
The quantum of finance required for EV adoption is considerable in India, according to a report Mobilising Finance for EVs in India by NITI Aayog and Rocky Mountain Institute in January 2021.
Between 2020 and 2030, the estimated cumulative capital cost of the country’s EV transition will be Rs 19.7 lakh crore ($266 billion)—across vehicles, electric vehicle supply equipment (EVSE), and batteries (including replacements). The estimated size of the annual EV finance market will be Rs 3.7 lakh crore ($50 billion) in 2030, as per the report.
EV sales in India had jumped by 50 per cent to 1.53 million volume in 2023 from 1.02 million in 2022, according to a CareEdge report. EV share in India’s total auto sales stood at 6.38 per cent in 2023, growing from 1.75 per cent in 2021.