Mr. Sameer Aggarwal, Founder and CEO of Revfin
With the aim of accelerating the adoption of electric mobility among the low income consumers from tier 2 cities of eastern UP-, Revfin, an advanced digital consumer lending platform that can underwrite financially excluded and underserved segments has recently received funding from Shell Foundation in partnership with one of the country’s largest electric vehicle operators, SmartE. The funds will be utilised for extending new loans for electric 3-wheeler operating on SmartE’s platform. The project will enable asset financing of 800 drivers impacting 17k lives in Lucknow, Allahabad and Varanasi without any other guarantee from OEMs/dealers and at interest rate of less than 25% as well as more than 75% Loan to Value ratio.
Shell Foundation (SF) is a UK-registered charity, founded by Shell in 2000, that supports innovative business solutions and enterprise models that can contribute towards sustainable development goals, thereby achieving financial independence and operating at scale. Revfin focuses on the financial inclusion of lower-income customers while SmartE is country’s largest electric vehicle platform across both passenger and logistics segment The agreement between these three organisations demonstrates a viable asset financing and operating model that will cater to low-income consumers from tier 2 cities and drive contribution to the growth of the electric mobility sector in India.
The viability of the asset financing model will depend on the generation of proof points on default rates and risk mitigation through guaranteed incomes; assessment of whether lending is viable without first loss guarantees (FLDG) from dealers post the pilot stage; possibility of having on-ground physical collection teams and reduced interest rates.
Further, as a demand aggregator and technology platformSmartE will enable increased earning opportunities to the drivers performing passenger mobility as well as delivery services enrolled on their platform.The vehicles financed by Revfin with support from Shell Foundation will leverage SmartE’s network of EV charging and battery swapping infrastructure as well as its cutting-edge technology platform.
“We are very excited and positive about this project with Shell Foundation. Our objective is to leverage their infrastructure to accelerate the adoption of e-mobility solutions for low-income consumers at scale. By demonstrating a viable and scalable business model with the right set of systems and frameworks, we intend to attract more capital to the sector. That said, in the near future, we want to incentivize larger banks/NBFCs for entering the space and partnering with Revfin at potentially lower interest rates to manage the risk of this sector. Meanwhile, by establishing a partnership with a demand aggregator platform like SmartE, we intend to increase the income potential for drivers amid the ongoing impact of the pandemic. SmartE will complement Shell Foundation’s funding by setting up adequate energy solutions (battery as a service and charging stations) to increase incomes and demand.”
Sameer Aggarwal, Founder of RevFin
”Shell Foundation is pleased to partner with Revfin and SmartE to enable higher adoption of cost-competitive 3-wheeler clean mobility solutions for lower income communities in India. First mile and last mile mobility is fundamental to economic and social development, and we believe that business solutions are best placed to provide lasting change.”
Aparna Mangla, India Regional Manager at Shell Foundation
Being the sole player in the digital lending category for the early wave of EV customers in Tier 3 and beyond, RevFin envisions providing new-to-credit and financially excludedindividuals convenient and accessible loans digitally.As per the latest agreement, the project will not only meet Shell Foundation’s and Revfin’s purpose of providing asset financing for electric three-wheeler but also help large number of drivers leverage SmartE’s demand platform and energy infrastructure
