ProsParity has successfully secured a $2 million pre-seed investment from notable global investors, including BEENEXT, Sparrow Capital, All In Capital, DeVC, and Huddle Ventures, enhancing its financial foundation.
The funding round also saw contributions from prominent angel investors such as Dr. Ashish Gupta (Co-founder of Junglee & Helion Ventures), Raj Dugar (former Eight Roads Ventures), Dhyanesh Shah (Co-founder of Mosaic Wellness), Abhishek Goyal (Co-founder of Tracxn), and Nitin Kaushal (Co-founder of Country Delight).
Co-founded by Saurabh Khodke and Anirudh Dhakar, ProsParity is revolutionizing the electric vehicle (EV) market with its cutting-edge end-to-end financing platform. The company excels in delivering compliance, scalability, and agility to lenders while simplifying the financing process for EV dealers and OEMs, ultimately facilitating easier access for end-users.
ProsParity's proprietary platform seeks to centralize the demand for EV financing, making it simpler for lenders to invest in this burgeoning asset class. The newly acquired funds will be allocated towards developing a robust proof of concept, enhancing technology, and broadening origination networks, initially focusing on Central India.
Moreover, ProsParity is actively establishing a vast partnership network with Original Equipment Manufacturers (OEMs), Fleet Operators, Dealerships, and Lenders, aiming to democratize EV financing in the mass market. The company is targeting an Asset Under Management (AUM) goal of INR 100 crore within the next two years, focusing on both the general market and new-to-credit consumers.
According to NITI Aayog, India's annual loan market for EVs is expected to reach a staggering INR 3.7 lakh crore by 2030. Despite the significant potential in EV financing, the traditional approaches remain less efficient compared to those for internal combustion engines (ICEs), with lenders often hesitant due to a limited understanding of the assets involved.
In India, the primary demand comes from the two and three-wheeler segments, catering to the mass market. Financing challenges such as high-interest rates, conservative loan-to-value ratios, protracted financing timelines, and scarce specialized financial solutions are notable barriers to the country's electric mobility transition.
As EV adoption increases, the market will require adept players capable of effectively originating and underwriting loans with optimized risk-adjusted returns.
"Electric vehicle financing is rapidly emerging as a critical asset class. With the Indian EV market on the brink of exponential growth, affordable and accessible financing solutions are vital," commented Saurabh Khodke, CEO and Co-founder of ProsParity. "Through our advanced technology platform and extensive lender network, ProsParity is set to play a pivotal role in shaping and expanding India's nascent EV financing sector."
Anirudh Garg, Partner at BEENEXT, highlighted, "ProsParity addresses a significant challenge in accelerating EV adoption in India, supporting the national goal of achieving 30% electric vehicle sales by 2030. The founders are committed to leveling the playing field between EVs and ICE vehicles by broadening access to finance, benefiting both consumers and dealers."