Axis Bank and GuarantCo Collaborate to Propel E-Mobility in India
Axis Bank, a big bank in India, is working together with GuarantCo, a group that helps with infrastructure projects. They’re giving a loan of 1 billion INR (which is about 12.1 million USD) to Everest Fleet, a company that takes care of a lot of vehicles in India. This money will help them buy electric cars to use as eco-friendly taxis in India.
This cooperative endeavor is a component of the framework guarantee agreement worth USD 200 million INR that GuarantCo and Axis Bank signed in May 2022. The agreement permits the mobilization of funds in the range of USD 300 to 400 million INR that are intended to finance the e-mobility ecosystem in India.
GuarantCo has given Axis Bank a two-thirds on-demand credit guarantee for this transaction, following a previous INR 2.5 billion (approximately USD 30 million) loan to an impact-focused non-bank financial institution in the Indian e-mobility sector. With this transaction, Axis Bank and GuarantCo are supporting Everest Fleet’s strategy to accelerate the adoption of electric vehicles, a segment that currently accounts for less than 1 per cent of total vehicle sales in the country
At least 1,000 drivers are anticipated to gain from the program, which will also directly support Sustainable Development Goals (SDGs) 11.2, 11.6, and 13, which tackle cheap, sustainable transportation systems, lower environmental impact, and address climate change, respectively.
Rajiv Anand, Deputy Managing Director of Axis Bank, emphasized the bank’s commitment to driving the e-mobility revolution in India. He stated, “Through this blended finance transaction, we have supported a service model and mobilized development capital, encouraging communities to adopt electric vehicles and catalyzing progress towards a greener, cleaner future.”
Siddharth Ladsariya, Founder and CEO at Everest Fleet, expressed gratitude for the instrumental support from GuarantCo and thanked Axis Bank for their commitment. He highlighted the transaction’s significance in fueling Everest Fleet’s growth and contributing to reducing emissions in India’s ride-hailing landscape.
Layth Al-Falaki, CEO at GuarantCo, conveyed delight in closing the transaction and emphasized its potential to transform the market. He affirmed GuarantCo’s commitment to furthering the e-mobility ecosystem in India, aligned with climate action aims and the PIDG 2030 strategy.
Content Credit: emobility