Three Wheels United (TWU), a global fintech company for EV financing, has collaborated with Log9 Materials, an advanced battery-technology company, to offer financing solutions for batteries and EV Vehicles deployed through their OEM partners. Eqaro Guarantees will provide guarantees for the financing, thus bringing a new lease of trust on commercial electric vehicles. As a part of the tri-party collaboration, over 500 3-wheeler electric vehicles will be deployed across Bengaluru, Chennai, Mumbai, and Delhi NCR over the next six months.
One of the key deterrents to EV financing has been the nascency of the technology, which has not only led to questions on the reliability and performance but also to an assumed zero residual value by the financing institutions. The uncertainty of the real asset value, added to the current unorganized financial policies and business models result in financiers averting loan requests, citing higher risks on returns. Another crucial challenge financiers face is the lack of an acclaimed guarantor, further adding to their reluctance to sanction loans for electric vehicles.
The RapidX 6000 and 8000 batteries by Log9 are India’s fastest-charging battery with a lifecycle of 10+ years. These batteries are designed for harsh tropical climatic conditions and can operate in the extreme temperature range of -40 to 65 degrees Celsius, thus making them the safest in the Indian market.
Now backed by a surety bond by Eqaro Guarantees, fleet operators can avail financing options to purchase Log9’s RapidX 6000 and 8000 (catering to 3Ws) batteries and its range of e-3Ws deployed in association with their OEM partners. This surety bond will guarantee a residual value for commercial electric 3Ws, which promises assurance for the financiers to grant purchase loans.
TWU will not only assist with financing but also provide support for the seamless operation of the EVs and access to relevant EV-related information through their mobile app for drivers. Log9 Materials will offer maintenance and servicing of the batteries and vehicles, ensuring minimal downtime for operations.
“With an intent to enable seamless EV Adoption, this collaboration will ensure that EV financing becomes easier and accessible for all while taking the residual value into consideration. We are glad to have Three Wheels United and Eqaro supporting our Mobility as a Service (MaaS) business model and joining us in our vision of encouraging a clean and green mobility ecosystem. With this partnership, we are confident of increasing the deployment of 3Ws on the Indian roads in the months to come, hence making the last mile logistics sector cleaner.”, said Kartik Hajela, COO & Co-founder of Log9 Materials, on the tri-party collaboration between Three Wheels United, Eqaro Guarantees and Log9 Materials.
Commenting on the partnership, Cedrick Tandong, CEO and Co-Founder, Three Wheels United, said, “TWU, Log9 Materials, and Eqaro have a shared vision of addressing the barriers to EV adoption at a grassroots level and reshaping India’s EV mobility ecosystem. By working with Log9 Materials and Eqaro, we are able to provide affordable financing options for fleet operators to experience the latest battery technology that offers enhanced range, power, and durability. We look forward to working together to make the switch to electric vehicles easier.”
Vikash Khandelwal, CEO, Eqaro Guarantees, “We are excited to work with Three Wheels United and Log9 Materials to provide financial guarantees, making it easier for customers to secure loans for their electric vehicles. This partnership is a step forward in promoting sustainable transportation and making EV ownership more accessible to a wider range of customers.”