Alt Mobility Partners with Zypp Electric for Deploying 15,000 EVs, Rolls out 300 EVs in July

The lower total cost of ownership coupled with push from the centre and state governments has seen an uptake of electric vehicles sales. The Delhi government's recent draft of the Delhi Motor Vehicle Aggregator Scheme mandates transition of commercial fleets providing passenger transport services and last mile deliveries to 10% in the first six months, 25% in the first year, 50% within two years and 100% by 2030.

Electric vehicle leasing has emerged as the most viable solution for commercial fleet electrification for Zypp and other B2B logistic companies and aggregators, owing to the extensive capital requirement for fleet replacement. The sector is yet to see participation from banks and financial institutions, due to apprehensions around underlying technology risk, uncertainty of asset performance and residual value during the term of the loan. It is estimated 5 lakh crore ($7bn) would need to be mobilized to finance the transition of India's commercial fleets.

Raashi Agarwal, Co-founder & CBO of Zypp said, "We are on a mission to build efficient and sustainable transportation for intra-city deliveries in India. Our partnership with Alt is a big step in our commitment and enables us to remain asset light while blitz scaling our nationwide expansion."

Dev Arora, Cofounder & CEO, Alt Mobility said, "Alt's exclusive EV leasing platform helps unlock scale for commercial fleet electrification by partnering with domestic banks and international financing institutions to mobilize low-cost debt. Alt provides credit enhancement, redeployment, and resale assurance, first loss protection, asset underwriting and asset management to remove barriers for financing institutions to participate in India's EV transition. With this approach, we are able to take higher exposures and place bigger bets on our partners."

Alt is expected to expand its fleet size to 50,000 electric two and three wheelers, mobilizing $100mn in capital over next 12 months.

IIT Delhi based Alt Mobility is backed by a team of second time renewable energy founders from NIT, IIT, MIT, who have previously deployed and cumulatively managed renewable energy assets over $100mn+ in previous ventures.