EV financing startup Perpetuity Capital raises Rs 7 crore through NCDs

Cleantech Mobiltiy-focused fintech startup Perpetuity Capital has raised Rs 7 crore through Non-Convertible Debentures (NCDs).

The funding round was led by N+1 Capital and RevX Capital, both of which are prominent debt funds supporting small and medium enterprises (SMEs) and financial institutions. 

In October last year, the startup raised Rs 5 crore in debt from Clime Finance.

Enhancing lending capabilities

Perpetuity Capital plans to deploy the raised funds to enhance its lending capabilities and expand its loan book, with a particular focus on promoting electric vehicle (EV) adoption in the eastern states of Bihar and Jharkhand.

“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,” said CEO Karamveer Dhillon.

Connecting users with NBFCs, banks

Launched in 2017, the company's digital lending platform connects customers with non-banking financial companies (NBFCs) and banks to facilitate loans for two-wheeler and three-wheeler EVs, both for passenger and cargo use. 

Perpetuity Capital’s platform facilitates quick loan processing within 24-48 hours, with a maximum loan tenure of five years.

Borrowers can avail loans up to 95% of the ex-showroom price of the EV, with no collateral required as the EV is hypothecated to Perpetuity Capital until the loan is repaid. It primarily serves delivery drivers and autorickshaw drivers looking to finance EVs for commercial use.

Investors comment

“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 of Investments at RevX Capital.

N+1 Capital's Vice President, Akshay Saini, said, “Perpetuity Capital’s focus on clean-tech mobility aligns perfectly with our investment philosophy of supporting ventures that drive positive environmental impact. We are proud to partner with them and support their growth in key regions of India.”

EV Financing market in India

With the Indian government's push to promote EV adoption and reduce carbon emissions, the EV financing sector is poised for substantial growth.

According to a report by NITI Aayog and the Rocky Mountain Institute, the estimated cumulative capital cost of India’s EV transition is projected to be Rs 19.7 lakh crore ($266 billion) by 2030. The annual EV finance market size is expected to reach Rs 3.7 lakh crore ($50 billion) by the same year.