FinTech Startup ProsParity Raises $2M for Credit Distribution Transformation

ProsParity funding

Three points you will get to know in this article:

  • ProsParity secures $2M in funding to revolutionize credit in India’s electric mobility.
  • The startup will use funds to create proof of concept, advance tech, expand networks.
  • ProsParity aims to overcome EV financing obstacles, aiming for Rs 100 crore AUM in two years.

Funding Secured for EV Financing Startup

ProsParity, a fintech startup dedicated to revolutionizing credit distribution in the electric mobility industry, has secured $2 million in a pre-seed funding round. Leading the round were prominent global institutional investors such as BEENEXT, Sparrow Capital, All In Capital, DeVC, and Huddle Ventures. Moreover, several notable angel investors contributed, including Dr. Ashish Gupta (co-founder of Junglee & Helion Ventures), Raj Dugar (formerly of Eight Roads Ventures), Dhyanesh Shah (co-founder of Mosaic Wellness), Abhishek Goyal (co-founder of Tracxn), and Nitin Kaushal (co-founder of Country Delight).

Expansion and Technology Advancement Plans

The startup is all set to make the most of the funds by working on a proof of concept leveling up technology and broade­ning origination networks in Central India. Moreover the goal is to establish a robust partnership network encompassing OEMs fleet operators dealerships and lenders.

ProsParity’s goal is to make EV financing accessible to the general public and reach an Asset Under Management (AUM) of Rs 100 crore within the next two years. Established by Saurabh Khodke and Anirudh Dhakar, the company focuses on streamlining and expanding financing options for electric vehicle (EV) dealers and original equipment manufacturers (OEMs), enhancing accessibility for end consumers. The platform consolidates financing needs, allowing lenders to direct their investments into the growing EV financing sector.

Challenges in India's EV Financing Landscape

India’s electric vehicle market, especially in the two and three-wheeler segments, encounters major financing obstacles. These include high interest rates, low loan-to-value ratios, prolonged approval times, and a scarcity of specialized financing options, all of which impede the advancement of electric mobility. ProsParity’s platform aims to tackle these challenges by offering optimized risk-adjusted returns for lenders and improved financing access for customers. NITI Aayog predicts that by 2030, the annual loan market for EVs in India will reach INR 3.7 lakh crore.

ProsParity, a fintech startup, has secured $2 million in pre-seed funding from prominent global investors to revolutionize credit distribution in India’s electric mobility industry. The startup aims to create a proof of concept, advance technology, and expand origination networks, with a focus on Central India. ProsParity plans to establish partnerships with OEMs, fleet operators, dealerships, and lenders to make EV financing more accessible to the general public. By tackling existing financing obstacles, the platform aims to reach an AUM of Rs 100 crore within two years, capitalizing on the predicted INR 3.7 lakh crore annual loan market for EVs in India by 2030.

Neha Kamath

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