Magenta Mobility secured debt financing for about 350 EVs under the Green Finance Scheme by the Small Industries Development Bank of India (SIDBI). The loan received from SIDBI will help to scale up deployment of Cargo Electric Vehicles for last mile deliveries across Delhi-NCR region.
Aligned with the national initiative of EV30@30, SIDBI’s “Mission 50K-EV4ECO” is poised to catalyze the local EV ecosystem by funding the procurement of 50,000 EVs in the country. This scheme intends to unlock the market by providing better financing terms and it is the precursor to EVOLVE scheme by SIDBI-World Bank. The pilot phase of this mission focuses on promoting two, three, and four-wheeler adoption through both direct (to MSMEs) and indirect lending (to NBFCs). SIDBI has adopted EV as a priority and by launching “Mission 50K- EV4ECO” they intend to promote the entire EV value chain.
This funding for Magenta Mobility underscores the company’s commitment to Electrifying and Decarbonizing logistics in India while contributing to the national goal of a carbon-neutral nation. It will serve as a pivotal accelerator for Magenta Mobility’s efforts in boosting electric vehicle adoption in the Delhi-NCR region.
“SIDBI recognizes the immense opportunities that electric vehicles bring to the table and is committed to reinforcing the financial avenues that promote green asset creation. Under the Green Finance scheme, we are addressing financing challenges encountered by MSMEs and NBFCs in the EV ecosystem. We’re resolute in expanding financial avenues for green assets, aligning with our nation’s agenda for a carbon-neutral future. Magenta Mobility’s commendable efforts in shaping the EV sector are evident, and this loan underscores our mutual commitment to expedite EV adoption” S Ramann, CMD of SIDBI quoted.
We welcome the financial support provided by SIDBI through this loan,” said Maxson Lewis, Founder and Managing Director of Magenta Mobility”. “This initiative by SIDBI of offering better financing terms for the EV ecosystem, significantly addresses the existing challenges of high-interest rates and limited financing options prevalent in the EV sector. This collaboration with SIDBI aligns seamlessly with our commitment to ‘Electrifying & Decarbonizing Logistics in India.’ The infused funds will directly contribute to our efforts in procuring electric vehicles for the Delhi NCR region, a critical step in our journey to accelerate EV adoption across India.”
With a resolute target of deploying 10,000 electric vehicles on Indian roads by 2024, Magenta Mobility continues its expansion journey by exploring new cities and further enhancing its EV charging infrastructure network. Operating successfully in cities like Bengaluru, Mysuru, Hyderabad, Mumbai, Pune, Delhi, Noida, and Gurgaon, Magenta Mobility effectively manages a fleet of over 1,000 electric vehicles, offering services across diverse sectors such as e-commerce, grocery delivery, FMCG, food, and pharmaceuticals for last-mile deliveries.