Finayo, an electric vehicle finance and asset management platform, has raised Rs 16 crore in funding co-led by NBFCs F Mec, CFPI, and a group of angel investors.
The startup, which specializes in green mobility embedded lending technology, aims to promote affordable EV adoption and make green financing accessible to consumers.
Expansion and technological advancement
Finayo said it will use the raised capital to fuel technological advancements and expand its presence across India. Co-founder and CEO Brajendra Singh Tomar emphasized the company’s plan to utilize these funds to invest in technology and broaden its footprint nationwide.
It also plans to escalate its business operations, aiming to boost EV growth even in the country’s most remote corners.
What does Finayo do?
Established in 2020 by Brajendra Singh Tomar and Yogesh Prakash, Finayo operates as a SaaS platform. The startup plays a crucial role in connecting lenders with customers of EV retailers to facilitate quicker and more efficient credit decisions, benefiting both retailers and OEMs by providing financing solutions in minutes.
Financial performance
Despite being in the pre-revenue stage until FY23, Finayo has shown promising growth, doubling its operating revenue to Rs 5.5 lakh in the last fiscal year. However, the company also witnessed a spike in losses, reaching Rs 41.78 lakhs in FY23, up from Rs. 6.59 lakh in FY22.
Finayo operates in a competitive landscape with major players like Revfin, Muffin Green Finance, Greaves Finance, Ascend Capital, and Ecofy.
Future of the EV financing market in India
According to a report by Bain & Company, India’s electric vehicle (EV) market is at a significant turning point. As of between October 2022 and September 2023, EVs accounted for about 5% of total vehicle sales in India.
The figure is projected to surge to over 40% by 2030, driven by strong adoption in both two-wheeler (2W) and three-wheeler (3W) categories. The report added that most EV sales today are 2W EVs, accounting for 85%–90% of all EV units sold in India.
Furthermore, the Indian electric vehicle financing market, which is currently valued at $2.15 billion, is expected to reach $4.37 billion, registering a compound annual growth rate (CAGR) of above 15% over the next five years.
Notably, the growth is partly driven by the increasing sales of electric vehicles, with a notable jump to 428,213 units in FY22 from 134,463 units in FY2021. Nearly 77% of all vehicles in India are financed through banks and non-banking financial corporations (NBFCs), indicating a robust financing ecosystem.
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