ProsParity gets $2m funding to simplify credit access for EV purchases

• The current landscape in India is catered by very few large NBFCs and private banks, primarily serving a limited customer base.

Electric vehicle financing platform ProsParity secured a $2 million in pre-seed funding for building proof of concept, technology, and expanding origination networks, starting with Central India.

The funding round was led by BEENEXT, Sparrow Capital, All In Capital, DeVC, and Huddle Ventures. Other investors such as Dr Ashish Gupta (Co-founder of Junglee & Helion Ventures), Raj Dugar (Ex-Eight Roads Ventures), Dhyanesh Shah (Co-founder of Mosaic Wellness), Abhishek Goyal (Co-founder of Tracxn) and Nitin Kaushal (Co-founder of Country Delight) also participated in this round.

ProsParity is looking to simplify credit access for purchase of EVs (two and three wheelers) as well as for setting up EV dealerships. 

“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,” Saurabh Khodke, CEO and Co-founder of ProsParity, said.

Moreover, he said that Indian EV market is poised for exponential growth and affordable financing solutions are critical to enable this transition.

However, he said the current landscape is catered by very few large NBFCs and private banks, primarily serving a limited customer base.

Creating a level playing field

Anirudh Garg, Partner at BEENEXT, said that the team’s mission is to create a level playing field between EVs and ICE vehicles by democratising access to finance not only for customers but also the dealers.

ProsParity is building a comprehensive partnership network across original equipment manufacturers (OEMs), fleet operators, dealerships and lenders.

According to NITI Aayog, the size of the annual loan market for EVs in the country is projected to hit Rs3.7 trillion in 2030.

Individual OEMs such as Mahindra, Tata, Ola Electric and others are tying up with financial institutions to facilitate loans to EV buyers.