Perpetuity Capital, which enables loans for electric vehicles (EVs), on Monday said it has raised Rs 7 crore through non-convertible debentures (NCDs) from debt funds N+1 Capital and RevX Capital. The company said it will deploy the capital to increase its lending capabilities and grow its loan book, particularly focusing on boosting EV adoption in the eastern states of Bihar and Jharkhand.
Launched in 2017, Perpetuity Capital’s digital lending platform enables customers to connect with NBFCs and banks for loans to buy two-wheeler EVs and three-wheeler passenger and cargo EVs. The loan is processed within 24-48 hours and the maximum tenure is five years.
Speaking on the new capital infusion, Karamveer Dhillon, CEO, Perpetuity Capital, said, “This funding will significantly bolster our ability to provide financial solutions that facilitate the adoption of clean mobility, ultimately contributing to a greener, more sustainable, and inclusive future.”
While no collateral is required for the loan, the EV is hypothecated to Perpetuity Capital until the loan is repaid. Borrowers can avail loans up to 95 per cent of the ex-showroom price of the EV.
“Investing in Perpetuity Capital represents an investment in sustainable and inclusive development. We believe in their vision and capacity to transform the mobility sector in Bihar and Jharkhand. Our collaboration aims to accelerate the adoption of clean technologies in these areas,” said Sushant Bhatia, Director Investments, RevX Capital.
With the government’s aim to promote adoption of EVs and reduce carbon emissions, the country’s EV financing sector is set to grow significantly. According to a report by the NITI Aayog and the Rocky Mountain Institute in January 2021, the estimated cumulative capital cost of the country’s EV transition will be Rs 19.7 lakh crore ($266 billion) across vehicles, EV supply equipment 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.