Perpetuity Capital Raises Undisclosed Amount From UC Inclusive Credit

Perpetuity Capital raised an undisclosed amount in debt funding led by UC Inclusive Credit. The start-up, founded in 2017, provides Electric Vehicle (EV) financing for commercial use through its platform, as the EV market sees rapid adoption in the country. By leveraging its platform, Perpetuity aims to make financing simple and accessible by overcoming product risks and offering bespoke lending solutions.  

“We are seeing an uptick in EV adoption, especially in the commercial vehicle segment. In an inflationary environment where every price increase is pinching companies and small fleet owners, Electric Vehicles make sense. The cost of running and maintaining an EV is substantially lower than it’s ICE counterparts.  On a cost basis, the commercial EV segment presents the best opportunity going forward for asset owners," says Karamveer Dhillon, CEO of Perpetuity Capital. 

The funding will help the start-up expand its loan book in the L5 segment by financing single-owner drivers and small fleet operators in NCR, Karnataka, Bihar and West Bengal, where it plans to deploy the funds. "The funds will fast-track the adoption of EV solutions among the un-banked and under-served in the country that lack access to formal bank credit," the company said in a statement. In April 2022, Perpetuity Capital raised debt from Sungrace Finvest.

Abhijit Ray, Managing Director, UC Inclusive Capital, said, "We are excited to partner with Perpetuity Capital for financing clean mobility. The promoters and senior management team at Perpetuity have a deep understanding of the logistics/supply chain sector in the eastern states of India. We believe a lasting environmental impact can only be made when we arm the smallest stakeholders in the supply chain with access to affordable and responsible credit. ”

“Going forward we want to increase the number of data points to 200 and completely automate our underwriting process. We believe lending through our balance sheet gives us an advantage over our competitors in an interest rate up-cycle with cost of capital increasing dramatically in the short and medium term” claimed Dhillon.

Perpetuity Capital issues credit using 30 traditional as well as non-traditional data points to help underwrite loans.