A group of international institutional investors, comprising BEENEXT, Sparrow Capital, All In Capital, DeVC, and Huddle Ventures, has provided $2 million in pre-seed investing to ProsParity. Prominent angel investors include Dhyanesh Shah (co-founder of Mosaic Wellness), Abhishek Goyal (co-founder of Tracxn), Nitin Kaushal (co-founder of Country Delight), Ashish Gupta (co-founder of Junglee & Helion Ventures), and Raj Dugar (previously Eight Roads Ventures).
With an initial focus on Central India, the monies obtained will be used to establish proof of concept, improve technical infrastructure, and extend origination networks. Simultaneously, ProsParity is building a strong network of partnerships that includes OEMs, Fleet Operators, Dealerships, and Lenders.
Within the next two years, the company hopes to reach an Asset Under Management (AUM) of INR 100 crore, serving both existing and new credit clients to democratise EV finance in the general market.
ProsParity was founded by Saurabh Khodke and Anirudh Dhakar as a comprehensive platform for funding electric mobility. The platform streamlines finance interactions for OEMs and EV dealers, facilitating financing for end customers, while emphasising compliance, scalability, and agility for lenders.
According to NITI Aayog, India’s annual loan market for EVs is forecasted to reach INR 3.7 lakh crore by 2030. Despite the significant potential in EV financing, the traditional origination methods used for ICE vehicles may prove less cost-effective. Lenders are cautious about entering this segment due to limited understanding of the underlying assets. Currently, India’s two and three-wheeler market caters to mass-market consumers. However, financing for EVs presents major challenges in terms of capital cost and availability. End-users encounter obstacles such as high interest rates, low loan-to-value ratios, extended processing times, and limited specialized finance options. As EV adoption grows, there’s a pressing need for players capable of originating and underwriting credit tailored to this segment, ensuring optimized risk-adjusted returns for lenders.
“Today, electric vehicle financing is an emerging asset class. The Indian EV market is poised for exponential growth and affordable financing solutions are critical to enable this transition. The current landscape is catered by very few large NBFCs and private banks, primarily serving a limited customer base,” commented Saurabh Khodke, CEO and Co-founder of ProsParity. “ProsParity’s technology platform and omni channel presence coupled with our experienced team and lender network, will help evolve and grow the nascent EV financing landscape in India,” he added.
“ProsParity is addressing a key bottleneck in the acceleration of EV adoption in the country and India’s goal of making 30% of all vehicle sales electric by 2030. The founding team’s mission focuses, in the long-term, on creating a level playing field between EVs and ICE vehicles by democratising access to finance for not just customers, but also the dealers,” said Anirudh Garg, Partner at BEENEXT.
