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TurnoIndia-based commercial electric vehicle platform, announced today that it has raised $13.8 million in Series A funding just one year after its launch. The business has garnered a 20% market share since opening in his five states of India in January 2022 and now plans to expand rapidly.
Launched by founders Hemanth Aluru and Sudhindra Reddy, who met while working at car-sharing business Zoomcar, Turno makes it much easier for small businesses in India to secure commercial electric vehicles (EVs). We aim to With these SMEs making up about 90% of the country’s logistics industry, the project has the potential to significantly accelerate the adoption of commercial EVs in the country, with significant sustainability benefits.
“We are seeing an inflection point for EVs,” Aluru said of buyers willingness to switch from vehicles that rely on traditional internal combustion engines (ICEs) for power. “But the key is getting the financing right and doing it over the life of the vehicle.”
The high initial cost of all commercial vehicles means that most buyers need credit when purchasing a new vehicle. But in the EV market, it proved to be a problem. Lenders want to base their loans on the value of assets rather than the borrower’s credit rating. Vehicle with ICE. As a result, buyers often have to pay large deposits and high interest rates, making EV prohibitively expensive.
Turno’s solution relies on innovative technology solutions that significantly increase its competitiveness with SMEs. The company’s platform connects the small business with his EV maker in the first place, offering credit to finance new purchases and guaranteeing buyers lowest resale prices in the future.
This value proposition is underpinned by Turno’s understanding of the electric battery market. The company has identified a significant resale market for EV batteries. These may no longer be suitable for use in vehicles after, say, five years, but can be relocated as fixed assets to locations such as data centers or infrastructure installations.
This gives Turno more confidence in making loans. Financing is provided in conjunction with financial providers. You can also offer a guaranteed resale value. In addition, small businesses that purchase commercial EVs on the platform consent to Turno receiving data about how the vehicle is used. Using analytics could give Turno a clearer picture of battery health, which could add value in the future. It can even offer buyers incentives to drive in ways that minimize their use.
Aluru believes this revolutionary model could greatly accelerate the adoption of EVs by commercial customers, who are responsible for far more miles driven and carbon emissions than car drivers. By lending at lower interest rates and guaranteeing resale value, the company estimates it can reduce the total cost of ownership of commercial EVs by 30% compared to other financing solutions.
“Today, 80-85% of India’s automotive fuel consumption is driven by internal combustion-powered commercial vehicles, but there is a strong desire to transition to a green economy, and the adoption of commercial EVs is very promising.” said Aluru. “Turno was founded with a mission to convert those petrol miles into electric miles and have a significant positive impact on the environment.”
SMEs are enthusiastic, with Turno now accounting for 20% of all commercial EV sales in India. The company is growing at a rate of 30% month-over-month and generates revenue equivalent to $20 million annually.
Investors are watching. Today’s Series A round was led by global venture capital firms B Capital and Quona Capital, with interest from new investors including Alteria Capital and InnoVen Capital, as well as existing investors Stellaris Venture Partners and Avaana Capital. I’m here.
“Commercial EV sales are highly dependent on the availability of attractive financing options, and today the Indian market suffers from a lack of truly customer-centric options,” said B Capital General partner Karan Mohla said. “Turno has identified a key missing element in the ecosystem, which not only solves the problem of funding, but also of distribution and services.”