ProsParity receives international investment of $2Mn in pre-seed reound

International institutional investors have contributed $2 million to ProsParity, a fintech platform that distributes loans in the electric mobility industry. BEENEXT, All In Capital, Sparrow Capital, Huddle Ventures and DeVC, are some names among these investors. A venture capital fund called BEENEXT is run by serial entrepreneurs.

The end-to-end financing platform for electric mobility, ProsParity, was established by Saurabh Khodke and Anirudh Dhakar. To facilitate financing for its end consumers, it focuses on compliance, scalability, and agility for lenders while making it easier for OEMs and EV dealers to enter into financing partnerships. The firm wants to combine the financing demand into one platform so lenders can direct their resources into the developing EV financing asset class. It does this by using its unique platform and origination strategy.

This round included participation from angel investors such as Abhishek Goyal (co-founder of Tracxn), Nitin Kaushal (co-founder of Country Delight), Dhyanesh Shah (co-founder of Mosaic Wellness), Raj Dugar (ex-Eight Roads Ventures), and Ashish Gupta (co-founder of Junglee and Helion Ventures).

It is anticipated that the money received would go towards developing technology and proof of concept as well as growing origination networks, with a focus on Central India. In order to support EV financing in the mass market, ProsParity is also establishing a broad network of partnerships with Original Equipment Manufacturers (OEMs), Fleet Operators, Dealerships, and Lenders. The company hopes to reach an Asset Under Management (AUM) of INR 100 crore in the next two years by catering to both new-to-credit customers and the larger market.

According to NITI Aayog, India's yearly loan market for electric vehicles is expected to reach INR 3.7 lakh billion by 2030. Although there is a significant possibility in EV financing, lenders are hesitant to lend in the segment because of their lack of knowledge about the underlying assets, and the usual origination method utilised in the case of ICEs may be less cost-effective.

Electric vehicle finance is a new asset class as of right now. The electric vehicle (EV) industry in India has the potential to develop rapidly, and this shift will require accessible finance options. According to Saurabh Khodke, CEO and co-founder of ProsParity, "the current landscape is catered by very few large NBFCs and private banks, primarily serving a limited customer base." 

"ProsParity's technology platform and omni channel footprint together with our experienced team and lender network, will contribute to developing and expanding the nascent EV financing landscape in India," he stated.

"ProsParity is tackling a significant impediment to the country's EV adoption acceleration and India's objective of having 30% of all vehicle sales be electric by 2030. The long-term goal of the founding team is to level the playing field between EVs and ICE cars by democratising dealer and consumer access to financing,” according to Anirudh Garg, Partner at BEENEXT.

ProsParity's founding team, with over 50 years of combined expertise in building platforms, retail, and liability franchises, has developed a unique, tech-led origination strategy that enables them to reach customers across sales channels, credit profiles, and regions. In addition to ensuring scalable distribution, ProsParity's B2B collaborations with ecosystem actors build a long-term moat of "asset risk models" for underwriting asset risks. Additionally, the business customises its solutions to effectively match client profiles with asset end-use, quality, and utility.