ProsParity, a fintech platform revolutionizing credit distribution in the electric mobility sector, has secured $2 million in pre-seed funding from a consortium of global institutional investors, including BEENEXT, Sparrow Capital, All In Capital, DeVC, and Huddle Ventures. Notable angel investors such as Dr. Ashish Gupta (Co-founder of Junglee & Helion Ventures), Raj Dugar (Formerly Eight Roads Ventures), Dhyanesh Shah (Co-founder of Mosaic Wellness), Abhishek Goyal (Co-founder of Tracxn), and Nitin Kaushal (Co-founder of Country Delight) have also joined this funding round.
The raised funds will be allocated towards developing proof of concept, enhancing technology infrastructure, and expanding origination networks, with an initial focus on Central India. ProsParity is concurrently establishing a robust partnership network encompassing Original Equipment Manufacturers (OEMs), Fleet Operators, Dealerships, and Lenders. With the goal of democratizing EV financing in the mass market, the company aims to achieve an Asset Under Management (AUM) of INR 100 crore within the next two years, catering to both established and new-to-credit customers.
Saurabh Khodke and Anirudh Dhakar established ProsParity as a comprehensive electric mobility financing platform. Emphasizing compliance, scalability, and agility for lenders, the platform streamlines financing relationships for EV dealers and OEMs, facilitating financing for end-customers.
According to NITI Aayog, India’s annual loan market for EVs is forecasted to reach INR 3.7 lakh crore by 2030. Despite the significant potential in EV financing, the traditional origination methods used for ICE vehicles may prove less cost-effective. Lenders are cautious about entering this segment due to limited understanding of the underlying assets. Currently, India’s two and three-wheeler market caters to mass-market consumers. However, financing for EVs presents major challenges in terms of capital cost and availability. End-users encounter obstacles such as high interest rates, low loan-to-value ratios, extended processing times, and limited specialized finance options. As EV adoption grows, there’s a pressing need for players capable of originating and underwriting credit tailored to this segment, ensuring optimized risk-adjusted returns for lenders.
“Today, electric vehicle financing is an emerging asset class. The Indian EV market is poised for exponential growth and affordable financing solutions are critical to enable this transition. The current landscape is catered by very few large NBFCs and private banks, primarily serving a limited customer base,” commented Saurabh Khodke, CEO and Co-founder of ProsParity. “ProsParity’s technology platform and omni channel presence coupled with our experienced team and lender network, will help evolve and grow the nascent EV financing landscape in India,” he added.
“ProsParity is addressing a key bottleneck in the acceleration of EV adoption in the country and India’s goal of making 30% of all vehicle sales electric by 2030. The founding team’s mission focuses, in the long-term, on creating a level playing field between EVs and ICE vehicles by democratising access to finance for not just customers, but also the dealers,” said Anirudh Garg, Partner at BEENEXT.
