Cleantech mobility-focused fintech startup Perpetuity Capital has successfully raised Rs 7 crore through Non-Convertible Debentures (NCDs). This funding round was led by prominent debt funds N+1 Capital and RevX Capital, which support small and medium enterprises (SMEs) and financial institutions. In October last year, Perpetuity Capital also raised Rs 5 crore in debt from Clime Finance.
Enhancing Lending Capabilities
Perpetuity Capital plans to use the funds to enhance its lending capabilities and expand its loan book. The primary focus is 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
Founded in 2017, Perpetuity Capital’s digital lending platform connects customers with non-banking financial companies (NBFCs) and banks to facilitate loans for two-wheeler and three-wheeler EVs. These loans cater to both passenger and cargo use. The platform enables 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. This service primarily benefits delivery drivers and autorickshaw drivers seeking to finance EVs for commercial use.
Investors’ Comments
Sushant Bhatia, Director of Investments at RevX Capital, said, “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.”
N+1 Capital’s Vice President, Akshay Saini, added, “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.
Perpetuity Capital’s recent funding will help the startup enhance its lending capabilities and support the adoption of clean mobility solutions in Bihar and Jharkhand. By providing financial solutions for EVs, Perpetuity Capital is contributing to a greener, more sustainable future while also driving significant growth in the EV financing market in India.
