Three Wheels United (TWU), a fintech company for EV financing, has raised $10 Million (around Rs 77 crore) as a part of Series A Funding led by Delta Corp Holdings with new and existing investors.
The funding round is a mix of equity and debt from Delta Corp Holdings with participation from existing investor Techstars. The round also saw participation from investors in the Middle East, Europe, and from Grip Invest. The company says the investment will be used to expand into new geographies in India and international markets, for strengthening operations in existing cities, enhance TWU’s technology platform, and grow its customer base.
In an earlier round Three Wheels United had raised funds from Asian Development Bank Ventures, Techstars, Microsoft, and investors from the Middle East, Europe, and the US.
The fintech company provides financing solutions to switch from conventional vehicles to electric two- and three-wheelers. Founded by Cedrick Tandong, Kevin Wervenbos, and Apurv Mehra in 2017, the company has been working towards removing financial barriers to the adoption of EVs in India and now, globally.
Three Wheels United claims it has onboarded over 50,000 drivers on its platform and has financed over 4,000 e-autorickshaws.
It has developed a platform to finance light electric vehicles and leverages technology to provide loans, and rent-to-own options to India’s micro-entrepreneurs to help them transition to electric two- and three-wheelers.
Cedrick Tandong, CEO and co-founder, Three Wheels United said, “Three Wheels United was founded with a belief that technology can accelerate our efforts towards promoting sustainable last-mile connectivity. Over the last several years of working in the EV ecosystem, we have gathered deep insights into some of the barriers to the mass adoption of EVs. The lack of affordable financing continues to be a key obstacle for low-income clients to switch to EVs. We have identified these challenges and we have created a scalable solution that is tailored for our clients.” “We are pleased with the further validation of our business model. The new investment will accelerate our next phase of growth and enable us to establish a strong foothold in the existing markets and test out other markets. We intend to launch the two-wheelers category and expand to ten more cities by the end of this year. TWU has long-lasting partnerships with leading OEMs, aggregator platforms, battery swapping and charging operators, tech giants and other related infrastructure service providers,” Cedrick added.
Mudit Paliwal, CEO, Delta Corp Holdings said, “We believe Three Wheels United is addressing a significant need in the EV ecosystem. To accomplish a large-scale EV shift, access to easy financing is a critical element. In Three Wheels United, we found a team that was passionate about the space but deeply strategic about the business. With their deep understanding of financing needs of low-income clients and through the use of innovative technology, they have built a highly profitable and scalable business model that can allow millions of micro-entrepreneurs to make the EV shift.”
Delta Corp Holdings is a global logistics and distribution company headquartered in the UK. Last year, Delta Corp acquired Quantship, an AI-driven freight analytics startup which was part of Entrepreneur First Singapore cohort 2019.
Vijay Tirathrai, MD, Techstars, said, “Having been a part of TWU’s growth story for the last several years, we have seen the team successfully navigate challenges and emerge as a leading financier for light electric vehicles. We are happy to be supporting the team in their mission to improve the livelihoods of auto-rickshaw drivers and reduce air pollution”