Que: How does Finayo's AI-powered platform facilitate lending partners in making quick credit decisions, particularly in the context of the EV financing landscape?

Ans: Finayo has revolutionized the customer’s journey in fintech, utilising state-of-the-art technology and innovative product solutions. From KYC initiation to credit evaluation, disbursement, and delinquency management, Finayo covers the entire lifecycle seamlessly. They stand out as possibly the sole fintech offering such a frictionless journey, simplifying operations for EV lenders with a unified system.

The founders of Finayo have deep ties to India's underprivileged EV entrepreneurs, gathering invaluable qualitative and quantitative insights into borrower behaviour. Their first-hand intelligence, coupled with their technological expertise, positions Finayo as a unique service provider for EV lenders. Moreover, Finayo's integration of alternative data sources alongside traditional ones sets them apart in borrower assessment, a capability honed through years of direct engagement with borrowers.

Que: Given the increasing adoption of EVs in India, how does Finayo plan to optimize fleet management, enhance financial inclusion, and bolster EV adoption?

Ans: Finayo is expanding its role in the EV ecosystem beyond lender, dealer, and borrower connections. With the growing adoption of EVs, Finayo aims to connect manufacturers (OEM), public institutions supporting and promoting EV adoption at scale like SIDBI, NITI Aayog, etc., and others to enhance fleet management efficiency. This extends to both consumer and commercial fleet management, leveraging Finayo's deep understanding of the EV landscape. While focusing on financial inclusion through credit enablement for underprivileged borrowers, especially in the passenger vehicle sector, Finayo plans to offer additional value by facilitating carbon credit benefits, promoting digital payment adoption, and advocating for borrower rights. Through these efforts, Finayo aims to play a crucial role in enhancing financial inclusion and empowering borrowers in the evolving EV market.

By broadening its scope to include stakeholders beyond lenders, dealers, and borrowers, Finayo is poised to revolutionize fleet management within the EV industry. This encompasses both consumer and commercial segments, leveraging its expertise in the EV ecosystem. While prioritising financial inclusion through credit enablement for underprivileged borrowers in the passenger vehicle sector, Finayo also aims to offer additional benefits such as carbon credit facilitation and promoting digital payment adoption. Through these initiatives, Finayo seeks to empower borrowers and foster financial inclusion, solidifying its position as a key player in the evolving landscape of EV finance.

Que: Can you discuss the strategic partnership with F Mec International Financial Services and how it will drive EV penetration in the country's climate financing space? Can you discuss the strategic partnership with F Mec International Financial Services and

Ans: Finayo and F Mec have joined forces with the common objective of significantly reducing carbon emissions through the financing of electric vehicles. By facilitating the acquisition of 750-1000 electric three-wheelers, our collaboration aims to decrease carbon emissions by an estimated 96.26 to 120.35 tonnes annually.

Additionally, our initiative extends to funding 500-750 electric two-wheelers, which are projected to reduce carbon emissions by an impressive 3.25-4.87 million tonnes annually. Moreover, this endeavour is expected to enhance the livelihoods of a large number of underprivileged households, thereby contributing to sustainable economic growth and prosperity.

Looking ahead, Finayo and F Mec are committed to scaling up our efforts by expanding the volume of financed electric vehicles by 25-30 percent year after year. Through our continued partnership and dedication to environmental sustainability, we strive to make a meaningful impact on carbon reduction while fostering social and economic empowerment within communities.

Que: Could you elaborate on Finayo's role in digitizing the EV lending portfolios and how it benefits both lending partners and EV borrowers?

Ans: Finayo plays a pivotal role in reducing NPAs for lending partners by leveraging alternate data alongside traditional metrics for loan portfolio management. This approach enhances portfolio quality, addressing the need for efficient risk management. In the realm of EV borrowing, Finayo stands out with its rapid service, facilitating EV vehicle loans in a few minutes, while also offering flexible repayment options with the help of QR Based Collection tech, subsidized interest, carbon credit monetisation, better ROI and faster turnaround time (TAT) for customer onboarding. Through technological advancements, Finayo strengthens borrower credit behaviour, fostering a more responsible credit environment and encouraging large financial institutions to actively participate in EV financing and refinancing, thus nurturing sustainable growth of the ecosystem aligned with the GOI agenda of ICE to EV transition.

In the Indian financing landscape, mainstream banks hesitate to finance borrowers in the EV sector due to perceived disorganisation and associated risks. Large banks are not participating in retail customer lending for electric three-wheelers and two-wheelers directly due to risk associated with this new asset class and absence of secondary market. Finayo addresses this constraint by providing insights into borrower credit behaviour, encouraging responsible borrowing practices by leveraging its deep domain expertise of EV 3W & 2W segment borrowers. Data-driven customer life cycle management solution of Finayo paves the way for increased participation from large banks and financial institutions, driving the expansion of the EV lending ecosystem and supporting its sustainable growth.

Que: Could you elaborate on the allocation of funds towards financing approximately 500 to 700 EV vehicles, specifically two-wheelers and e-rickshaws?

Ans: Finayo has already disbursed INR 20 crore and aims to drive EV penetration in India. Emerging as a key asset in the EV and Green-tech investment portfolio, Finayo, with this INR 100 crore disbursement as the first milestone, will focus on accelerating the ICE to EV transition. According to the plan, it will allocate 60-70 percent of funds to advancing three-wheeler L3 and L5 EVs, while 30-40 percent will bolster the electric two-wheeler market. Furthermore, we aim to exponentially grow this initiative in the years ahead.

Que: How does Finayo plan to expand its network and strengthen its technological capabilities with the allocated funds?

Ans: Finayo aims to broaden its EV financing footprint by expanding into new geographic regions and segments. Alongside passenger three-wheeler financing, Finayo plans to venture into cargo three-wheeler financing, as well as passenger and commercial electric two-wheeler financing. This expansion encompasses both network growth and geographical reach, with allocated funds dedicated to supporting this initiative.

In addition to the geographic and segmental expansion, Finayo will invest in enhancing its technological and product capabilities to further benefit borrowers and bolster the overall EV ecosystem. This comprehensive strategy focuses on three key pillars: geographic expansion, technological advancement, and investment in human resources to drive sustainable growth across all fronts.

Que: Looking ahead, what are Finayo's long-term objectives in contributing to the growth and sustainability of the EV financing and asset management ecosystem in India?

Ans: EV financing in India remains in its infancy, with the overall penetration of EVs accounting for less than 1 percent of the total market of 35 crore vehicles. Notably, electric three-wheelers lead with a penetration of around 8-9 percent, while electric two-wheelers stand at 5 percent. Within the vast two-wheeler population, comprising 85-88 percent of vehicles, three-wheelers make up 10 percent, with the remaining 4 percent attributed to four-wheelers, buses, and trucks. Being an early participant in this new and rapidly growing asset class, Finayo maintains a cutting edge over incumbents and most other start-ups due to extensive groundwork for over around 3 years of understanding and researching extensively before building the solution.

Finayo has already built a moat of deep understanding of the borrowers of a few segments of EV in particular which they continuously keep refining by continuous engagement and in-person meetings with borrowers, dealers, OEMs and all types of lenders. Despite growing competition, Finayo will be in a position to maintain its position and grow its market share exponentially in the years to come.

Finayo aspires to establish itself as a significant player in the EV financing segment and will target capturing 10 percent of the market share in its segment in India by 2030 and explore expanding outside India. Despite the short-term projections spanning one to two years, Finayo harbours ambitions to become a dominant force in the long run, capitalizing on the vast opportunities presented by India's evolving EV landscape.