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Alt Mobility, an IIT Delhi-based commercial fleet leasing platform launches “Elektrowagen”, a structured finance solution that mobilizes low-cost debt financing from domestic and foreign financial institutions to electrify Indian commercial fleets. The Company signed MoUs with two non-banking financial institutions (NBFCs), which are focused on electric vehicle financing. This commitment is for $25 million for the next twelve months.
Co-founder and CEO of Alt Mobility, Dev Arora said, “We are announcing our first partnership with Mufin Green Finance and AMU Leasing, both have been pioneers in the retail EV financing space and will be working with us to unlock B2B fleet leasing for electric two-wheelers and LCVs. An estimated 80% of EV OEM sales are from B2B logistic and aggregation companies, seeking asset-light, low cost, flexible and turnkey fleet solutions for switching their fleets to electric.”
“On one side we provide asset light logistic companies with the ability to rapidly scale up to tens of thousands of EV fleets in months with a full stack EV leasing offering. On the other side, Alt’s debt aggregation platform aims to unlock access to hundreds of millions of dollars of debt through credit enhancement, asset underwriting, co-lending, and redeployment assurance that is backed by our FleetOS fleet management platform, for financing institutions to participate in the rapidly growing demand from our partners,” Dev said.
Pankaj Gupta, CEO of Mufin Green Finance, India first listed NBFC dedicated to EV finance said, “We are delighted to partner with Alt to promote our joint mission of transitioning India to sustainable mobility through improved access to finance. We are excited by the demand Alt has been able to generate with B2B partnerships and a complimenting approach towards risk sharing and technology-enabled asset management gives us enormous confidence as a lender.”
Global impact funds are backing Mufin, with over 100Cr in disbursements in the last 150 days to both retail and business customers.
Nehal Gupta, Director at AMU Leasing said, “We are glad to announce our partnership with Alt for leasing of eLCVs. With this partnership, we hope to jointly work with Alt to onboard new OEMs, expand customer segments and geographies and scale up our EV portfolio rapidly. The team’s expertise in the EV technology stack, skin in the game approach and collaborative synergies has given us a lot of comforts.”
Commercial fleet electrification could have a positive impact on seven Sustainable Development Goals.
“As the pace of fleet electrification grows and conventional pools of debt remain inaccessible, we are actively working to unlock low-cost international development and impact capital for participating in the exciting EV transformation in India. We also hope GOI considers including EV finance under priority sector lending to give a boost to the sector,” Dev said.