The fresh investment will be used for entry into new geographies across domestic and international markets, strengthening operations in existing cities, enhancing TWU’s technology platform, in addition to growing its customer base, it said.
The company said it intends to launch the two-wheelers category of loan and expand to 10 more cities by the end of this year.
With the new investment, the company plans to scale up two-wheeler and three-wheeler financing in India by partnering with the government and other industry players, and start pilots in the Middle East, Africa, and other emerging markets, it said.
The company has earlier received funding from Asian Development Bank Ventures, Techstars, Microsoft and investors from the Middle East, Europe, and the US.
Founded by Cedrick Tandong, Kevin Wervenbos and Apurv Mehra in 2017, TWU provides affordable financing solutions for drivers to help them switch from conventional vehicles to EV two- and three-wheelers.
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Three Wheels United, which has over 50,000 drivers on its platform, has financed over 4,000 auto-rickshaws, as per the release.
“The new investment will accelerate our next phase of growth and enable us to establish a strong foothold in the existing markets and test out other markets,” said Tandong, co-founder-CEO, Three Wheels United.
Unlike traditional banks that collect EMIs at the end of the month in a big chunk, the platform incentivises money collection on a daily/weekly basis in small amounts, which helps it tap into the finances when the auto-rickshaw drivers actually make money, the company said.
“We believe Three Wheels United is addressing a significant need in the EV ecosystem. To accomplish a large-scale EV shift, access to easy financing is a critical element. With their deep understanding of financing needs of low-income clients and through the use of innovative technology, they have built a highly profitable and scalable business model that can allow millions of micro entrepreneurs to make the EV shift,” said Mudit Paliwal, CEO, Delta Corp Holdings.
Last year, Delta Corp acquired Quantship, an AI driven freight analytics startup which was part of Entrepreneur First Singapore cohort 2019.
Vijay Tirathrai, Managing Director, Techstars, said, “Having been a part of TWU’s growth story for the last several years, we have seen the team successfully navigate challenges and emerge as a leading financier for light electric vehicles. We are happy to be supporting. the team in their mission to improve livelihoods of auto-rickshaw drivers and reduce air pollution.”
The UAE-based Neo Capital Ventures was the financial advisor on the deal to TWU alongside investing in the current round, according to the release.