EV financing Fintech startup Three Wheels United has secured $10 million in Series A funding led by Delta Corp Holdings with participation from new and existing investors.
The current funding round is a combination of equity and debt from Delta Corp Holdings with participation from existing investor Techstars. The round also saw participation from investors in the Middle East, Europe, and Grip Invest.
The new investment will be used towards entry into new geographies in India and international markets, for strengthening operations in existing cities, enhancing TWU’s technology platform, and growing its customer base.
Founded by Cedrick Tandong, Kevin Wervenbos, and Apurv Mehra in 2017, the company has been steadfastly working towards removing financial barriers to adopting EVs in India and globally. Three Wheels United provides affordable financing solutions for drivers to easily make the switch from conventional vehicles to EV two and three-wheelers.
The fintech startup has over 50,000 drivers on its platform, offering them various products and services. The company has financed over 4,000 auto-rickshaws, resulting in the reduction of 1,72,000+ tonnes of CO2 emissions, and the generation of an extra $71 million in income for the drivers.
The company has developed a disruptive platform to finance light electric vehicles (EV). The company leverages technology to provide the most comprehensive, affordable loans, and rent-to-own options to India’s micro-entrepreneurs to help them easily switch to EV two and three-wheelers.
Cedrick Tandong, Co-Founder and CEO of Three Wheels United, said,
“Three Wheels United was founded with a belief that technology can accelerate our efforts towards promoting sustainable last-mile connectivity. Over the last several years of working in the EV ecosystem, we have gathered deep insights into some of the barriers to the mass adoption of EVs. The lack of affordable financing continues to be a key obstacle for low-income clients to switch to EVs. We have identified these challenges and we have created a scalable solution that is tailored for our clients”
“We are pleased with the further validation of our business model. 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. We intend to launch the two-wheelers category and expand to ten more cities by the end of this year. TWU has long-lasting partnerships with leading OEMs, aggregator platforms, battery swapping and charging operators, tech giants, and other related infrastructure service providers.”, Cedrick added.
Three Wheels United had previously raised funding from Asian Development Bank Ventures, Techstars, Microsoft, and investors from the Middle East, Europe, and the US.
Delta Corp Holdings is a global logistics and distribution company headquartered in the UK. Last year, Delta Corp acquired Quantship, an AI-driven freight analytics startup that was part of Entrepreneur First Singapore cohort 2019.
UAE-based Neo Capital Ventures was the exclusive financial advisor on the deal to TWU alongside investing in the current round.
Mudit Paliwal, CEO of Delta Corp Holdings, said,
“We believe Three Wheels United is addressing a significant need in the EV ecosystem. Access to easy financing is a critical element to accomplish a large-scale EV shift. In Three Wheels United, we found a team that was passionate about the space but deeply strategic about the business. 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.”
He added, “We are excited to be investing in Three Wheels United. Over the previous years, the team has shown great commitment to enabling micro-entrepreneurs to switch to cleaner and more economically viable last-mile alternatives. TWU has taken an inclusive and unique ecosystem approach towards their goal of reducing the climate impact of the transportation sector.”
In February this year, Three Wheels United partnered with Electric Vehicle maker Euler Motors to deploy over 1000 EV 3-wheelers across Delhi NCR, Bengaluru, Chennai, and Hyderabad by the end of the financial year 2023. Before this, the Bengaluru-based LEV financier also partnered with Piaggio Vehicles to deploy 500 Piaggio Ape’ E City and Ape’ E-Xtra vehicles across India.