Mumbai: Two-wheeler finance specialist WheelsEMI has raised Rs 105 crore in series C funding amid rising demand for used two-wheelers post the pandemic.
The Pune-based company secured the funding in a tough fundraising market from its existing investors Faering Capital and Elevar Equity at a decent premium, according to a senior company executive.
WheelsEMI lends money for all kinds of two-wheeler purchases, including new two-wheelers in rural areas, electric two-wheelers, and used two-wheelers, besides leasing vehicles.
The company had raised Rs 23 crore in series A funding in March 2017, followed by series B funding of Rs 100 crore in December 2018, which was led by Faering Capital.
The company intends to use the Series C funds to penetrate deeper into rural India as the need for personal mobility rises in the era of a pandemic. The raised capital will be used to further expand into interiors of India while also participating in the entire customer life cycle of owning and using a two-wheeler, thereby strengthening the company’s core proposition of a two-wheeler specialist
Considering that a two-wheeler is the most economical personal mobility solution, WheelsEMI co-founder & MD Srinivas Kantheti said he is not at all surprised by the quick recovery in industry post lockdown, wherein almost all the vehicle makers are reporting month-on-month growth in sales
“We have also reached last year’s numbers by September. With festive seasons around the corner, we are fully geared to see a big jump in financing especially in rural areas where we are deeply penetrated and are ready with necessary funds,” added Kantheti.
Within three years of establishment, WheelsEMI has become the largest financier of second-hand two-wheelers in the country and perhaps the only serious financier of electric vehicles. The company funds retail customers as well as institutions. It also offered 1,000 scooters on lease to a startup in Bengaluru. Over three years, WheelsEMI has financed over 100,000 vehicles, disbursing over Rs 500 crore across 200 locations in India, with a current book size of Rs 300 crore.
Wheels EMI has a tie-up with three large EV two-wheeler companies and is committed to jointly build Green Mobility through unique financing, leasing, and subscription model both for end consumers as well as fleet operators.
Faering Capital is a leading Indian private equity firm founded in 2009 by Aditya Parekh and Sameer Shroff. They currently manage Rs 2,100 crore (~$350 million) of capital across two funds, whereas Elevar Capital is an Impact Fund that seeks to connect the economic resilience and vibrancy of low-income communities with the capital market.