WheelsEMI Private Limited
Customer
WheelsEMI is a two-wheeler (2W) lifecycle services company that provides financing for new and preowned 2W as well as a range of additional solutions along the ownership lifecycle (marketplace for trading preowned 2W, leasing, insurance, servicing and spare parts management). WheelsEMI was started in Pune, India, in 2017, as an NBFC (non-banking finance company) by a team of senior veterans of the automobile and 2W (financing) industries.
Funding Objective
DEG will be investing an amount of up to INR 850mn (EUR 10.0mn) directly into WheelsEMI Private Ltd. via Compulsorily Convertible Preference Shares (“CCPS”).
Reasons for financing
The market for new 2Ws is either serviced by captive financing companies or banks catering only to population segments with a bank account. Both options become less available in rural areas and for pre-owned 2Ws there are at present no organized/formal financing options at all. In this environment, WheelsEMI is offering easily accessible financing solutions via its Direct Collection Model/DCM (cash transactions on-site at dealership) as well as quality-guaranteed trading of pre-owned 2Ws via its marketplace (2Ws are serviced by WheelsEMI pre-sale).
WheelsEMI’s model is thus significantly driving the financial inclusion agenda by offering financing options to the majority of the Indian population who still remain outside the formal banking system. Wheels is projecting that 30% of its financing business will be for electric 2Ws by 2030, thus also significantly contributing to the climate agenda.
The investment contributes to the following SDGs: SDG 5 – Gender Equality, SDG 8 – Decent Work and Economic Growth, SDG 9 – Industry, Innovation and Infrastructure, SDG 10 – Reduced Inequality, SDG 11 – Sustainable Cities and Communities and SDG 13 – Climate Action.