Chargeup partners with NBFCs to deliver INR 50 crore in financing for electric vehicles targeting last-mile drivers.

Chargeup has collaborated strategically with Mega Corporation Limited and Shavkari Finance. Chargeup is designed with drivers in mind, promoting the use of electric vehicles by providing financing and managing assets related to EVs. This strategic partnership will be raising the total amount of Rs 50 crore focussing on the production of 4,000 commercial electric vehicles in the next one year. 

This initiative will provide various EV financing options for last mile drivers and will increase the transition to EVs. The Chargeup software stores the data on driver and battery usage for asset management and reduction in credit risk, which results in effective loan disbursements and improving financial performance. 

Varun Goenka, the Founder and CEO of Chargeup, articulated his thoughts on the subject, saying, "Financing for EVs in India entails much higher risks for lenders, especially NBFCs, due to a variety of reasons including reliability concerns of battery life, less development of EV used market, and borrowers with low credit ratings. 

These uncertainties lead to higher NPAs and limited loan approvals, ultimately creating a huge impact on EV adoption at a massive scale

Chargeup has taken this responsibility and is offering various solutions to these challenges through its data driven approach and new technological platform. The company has claimed that they have helped more than 8,000 drivers in purchasing electric vehicles and solved their loan disbursement amounts going up to Rs 8.64 crore through a collaborative effort with Ascend, which operates as a non-banking financial company (NBFC).

The Vice President and business head of Mega Corporation, Joydeep Dutta, expressed his views on the partnership and said, “EV financing was not a forte of NBFCs but with chargeup’s support, we got an instant market opportunity into the evolving and rising EV industry, thus providing us the tech, trust and technology to rise in this unique sector.”

Nandita Monga, Vice President of Shivakari Finance said, “With a joint collaboration with Chargeup, we are now financing E-rikshaws. Their tech platform has made our process seamless and has made our assets even more safer with a significant reduction in NPAs.”

The ultimate objective of Chargeup is to grow their EV financing network and reach more lenders and fleet operators, thus helping the drivers with various solutions on limited credit history.