Alt Mobility has partnered up with Zypp Electric, India’s largest e-logistics provider, to lease 15,000 electric 2-wheelers to facilitate last-mile deliveries.
This partnership will triple Zypps’ fleet size in the current financial year, ease out a national rollout for electric bike deliveries, and offset approximately 18 million kgs of carbon emissions per year.
Electric vehicles have seen an increase in sales due to the lower cost of ownership and support from the state governments and central governments. New Delhi’s draft of the Delhi Motor Vehicle Aggregator scheme mandates that commercial fleets that provide passenger transport services and last-mile deliveries be converted to electric vehicles within six months by 10%, in the first year by 25%, within 2 years by 50%, and by 2030, 100%.
Due to the large capital requirements for fleet replacement, electric vehicle leasing has been deemed the best solution for commercial fleet electrification by Zypp and other B2B logistic businesses and aggregators.
Banks and financial institutions are yet to participate in the sector due to concerns about underlying technology risk, uncertainty regarding asset performance, and residual value over the term of the loan. To finance India’s transition to commercial fleets, 5 lakh crore will be needed.
Raashi Agarwal, Co-founder & CBO of Zypp said, “We are on a mission to build efficient and sustainable transportation for intra-city deliveries in India. Our partnership with Alt is a big step in our commitment and enables us to remain asset-light while blitz scaling our nationwide expansion.”
Dev Arora, Cofounder & CEO, of Alt Mobility, said, “Alt’s exclusive EV leasing platform helps unlock scale for commercial fleet electrification by partnering with domestic banks and international financing institutions to mobilize low-cost debt. Alt provides credit enhancement, redeployment, resale assurance, first loss protection, asset underwriting and asset management to remove barriers for financing institutions to participate in India’s EV transition. With this approach, we are able to take higher exposures and place bigger bets on our partners.”
Alt plans to increase its fleet to 50,000 electric two-wheelers and three-wheelers. The company will also mobilize USD 100 million in capital in the next twelve months.
Alt Mobility, based in IIT Delhi, is backed by a group of second-time renewable energy founders from NIT, MIT, and IIT. They have previously managed more than USD 100 million+ worth of renewable energy assets.