Meghana KandraEV financing is a digital platform that recently raised Rs. 100 crore in debt. It plans to use this to expand into new geographies that will finance three-wheelers and also provide loans for two-wheelers. The financing will be on the e-commerce delivery space, with expansion into states like Assam, Madhya Pradesh, Punjab, and Rajasthan in India.
Image credits- Revfin
It targets to grow revenue up to five-fold in the new fiscal year, up from its current rate of Rs 12 crore per annum. “We have recently raised debt of just over Rs 100 crore. We want to utilize this debt to first go into newer geographies for electric three-wheeler financing. We want to get into states like Assam, Madhya Pradesh, Rajasthan, Punjab where our penetration is currently low,” Revfin Services Pvt Ltd Founder and CEO Sameer Aggarwal told PTI.
He further said, “What we also want to do is to be able to use this debt to enter into electric two-wheelers financing and leasing, especially in the e-commerce delivery space.”
In September last year, the company had raised USD 4 million through equity, he said adding being a lending organization “for us to grow, we have to leverage our balance sheet. We did an equity raise round a few months back and now we leverage that equity to raise debt. That gives us basically a huge spurt of growth, and then subsequently, we will do another equity raise.” The startup is currently present across 18 states with over 350 dealership locations and has partnerships with multiple original equipment manufacturers (OEMs).
Commercial sector
“From a market perspective, we already have a very high market share in states like Bihar, Uttarakhand, Jharkhand, and Uttar Pradesh. We are looking to strengthen the market share in the states and also we want to build similar market share in multiple states,” Aggarwal added. On the company’s plans to make a foray into the financing of electric two-wheelers, he said, “Our focus is more on the commercial side. We will give the loans to individuals who are operating under a fleet operator or under an e-commerce platform.”
Highlighting opportunities in the segment, he said in the e-commerce and fleet operators space, most of the financing is happening at a wholesale level to the fleet operator, who are able to raise money from organizations to buy their own vehicles. However, individual drivers are still not getting financed. Fleet operators generally like to keep their business’s asset-light, but at this point in time, they have to buy the vehicles on their own balance sheet, because nobody is willing to finance drivers directly.
Credits- Business Standard