cKers Finance, moEVing Urban Technologies partners to decarbonize last-mile freight
cKers Finance, an NBFC focused on financing sustainability and clean energy transition in India has announced a debt financing tie-up with moEVing Urban Technologies, an Electric Vehicle ecosystem technology platform focused on sustainable mobility and sustainable livelihoods. cKers has set up an initial debt financing line of Rs. 20 million for moEVing. This facility will be used by MoEVing to scale up the deployment of electric three-wheelers (e-3W) to reduce the carbon footprint for its last-mile delivery customers.
With India scaling up its ambitions for EV adoption, last-mile freight is seen as one of the key entry points. Leading e-commerce platforms, hyperlocal players, and consumer product companies are listening to their customers and investors and are working to reduce their carbon footprint by electrifying their last-mile delivery fleets. e3Ws offer triple environmental benefits of a lower carbon footprint, no air pollution, and low noise operations. The end-customer also gains from higher efficiency in operations with always-on tracking features of the all-electric vehicles.
As a new-age EV-focused third-party logistics partner, MoEVing offers comprehensive end-to-end delivery logistics solutions on an innovative e-Mobility as a service business model. MoEVing is working with OEMs like Altigreen and Piaggio which are leveraging Fame II subsidies to bring down the upfront purchase costs while at the same time enabling the lower cost of operations.
cKers offers flexible fleet financing solutions for last-mile delivery-focused players across multiple states to power the transition to EVs. It is leveraging its understanding of technology to develop credit risk underwriting frameworks for assessing viability and risk monitoring for the vehicles being deployed.
Speaking about the facility, Jayant Prasad, Executive Director, cKers Finance said, "The e-mobility sector is growing due to the policy push at national and sub-national levels and the demand from early adopters. At cKers Finance, we are seeking to be a catalyst to this transition. We are partnering with companies that showcase a strong commitment to a sustainability-focused business model and we are developing a deep understanding of the EV ecosystem to stay ahead of the curve. cKers has taken a leading position in financing the clean energy transition in the last mile and is targeting to fund over 1,000 e3Ws for last-mile delivery in the current financial year itself. This is in addition to the financing lines we have already been extending over the last two years to finance customers in the electric two-wheeler and passenger three-wheeler segments.
Talking about the transition of the Indian EV market, Vikash Mishra, Founder, moEVing said, "Mobilizing capital and lowering costs related to financing is key to accelerating the adoption of electric vehicles across all form factors in India. We are delighted to partner with cKers Finance to boost emissions-free package deliveries to the end customer across India by expanding our three-wheeler fleet."
Speaking about the partnership, Deepak Gupta, Business Development Head at cKers said "Early adoption of EVs in India is being witnessed in the last mile delivery space, where the TCO (Total Cost of Ownership) advantage of electric three-wheelers is visible and viable options are now available from OEMs. We estimate that over 50 percent of new deployments of last-mile delivery vehicles focused on organized demand could transition to EVs over the next three years. We see moEVing as an early mover in the segment who is putting together the required skill sets and capital to operate their electric fleet under the last mile delivery service contracts. Our asset financing line for sustainability focussed EV fleet operators like moEVing is customized and structured with a deep ground-level understanding. It enables these players to scale up and helps in the faster adoption of cleaner mode of transport on Indian roads."
