GuarantCo guarantees Axis Bank to provide an INR 1 billion loan to Everest Fleet for the purchase of electric vehicles in India

  • Date written
  • January, 2024

GuarantCo guarantees Axis Bank to provide an INR 1 billion loan to Everest Fleet for the purchase of electric vehicles in India

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a two-thirds on-demand credit guarantee to Axis Bank, one of the largest and most prominent private sector banks in India, to enable an INR 1 billion (c. USD 12.1 million), loan for over four years to Everest Fleet for the purchase of electric cars to be deployed as green taxis in India. The partial guarantee is provided under the USD 200 million INR equivalent framework guarantee agreement that GuarantCo and Axis bank signed in May 2022, which allows mobilisation of funds between USD 300 and 400 million in INR equivalent to finance the e-mobility ecosystem in India.

This is the second transaction closed in 2023 under the framework agreement after the INR 2.5 billion (c. USD 30 million) three-year loan to Vivriti Capital, an impact focused non-bank financial institution, earlier this month to support the company’s strategy to expand its portfolio through lending to companies operating in the e-mobility ecosystem in India. GuarantCo, through PIDG Technical Assistance, provided a grant to help with several aspects of the transaction.

Everest Fleet is India’s largest independent fleet management provider for the ride hailing platforms operating in the country. The transaction supports the company’s strategy to accelerate the use of electric vehicles, currently accounting for less than 1 percent of total vehicle sales in the country, to reduce emissions.

Through this transaction at least 1,000 drivers are expected to benefit which makes a direct contribution to SDG 11.2 (Provide access to safe, affordable, accessible and sustainable transport systems for all), SDG 11.6 (Reduce the adverse per capita environmental impact of cities) and SDG 13 (Take urgent action to combat climate change and its impacts).

Layth Al-Falaki, CEO at GuarantCo, said:

“We are delighted to have closed the transaction with Everest Fleet under the framework guarantee agreement that we signed with Axis Bank in May 2022.  This is the second transaction that we have closed under the Axis Bank agreement. It is expected to have a market transformation effect that we hope will help catalyse deployment of more electric vehicles by green ride hailing companies in India. We will continue to utilise the climate mitigation guarantee with Axis Bank to further the e-mobility ecosystem in India and to deliver against our climate action aims aligned with the PIDG 2030 strategy.”

Rajiv Anand, Deputy Managing Director at Axis Bank said:

“Axis Bank is committed to driving the e-mobility revolution in India. By collaborating with GuarantCo, we aim to empower companies that are working towards fostering sustainable transportation solutions to combat climate change. Through this blended finance transaction, we have supported a service model and mobilised development capital. We are consistently striving not only to encourage communities to adopt electric vehicles but also catalysing progress towards a greener, cleaner future for all, echoing our commitment to the UN Sustainable Development Goals.”

Siddharth Ladsariya, Founder and CEO at Everest Fleet said,

“As we embark on this transformative journey toward a greener future, Everest Fleet draws inspiration and motivation from the unwavering commitment and instrumental support provided by GuarantCo. We would like to thank Axis Bank for their support to form this long-term partnership with us, right from ideating, structuring to executing the transaction in a timely manner. Their strategic funding marks a pivotal moment in our mission to accelerate the adoption of electric vehicles in India’s ride-hailing landscape. This transaction not only fuels Everest Fleet’s growth but signifies a collective commitment to reducing emissions, fostering innovation, and pioneering positive change in the Indian mobility sector.”  


About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabling USD 6.2 billion of total investment and USD 5.2 billion of private sector investment, giving 45.2 million people improved access to infrastructure and creating around 229,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development.

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity and urgency.
PIDG offers Technical Assistance for upstream, early-stage activities and concessional capital; its project development arm – which includes InfraCo Africa and InfraCo Asia – invests in early-stage project development and project and corporate equity. PIDG credit solutions include EAIF (the Emerging Africa Infrastructure Fund), one of the first and more successful blended debt fund in low-income markets; GuarantCo, its guarantee arm that provides credit enhancement and local currency solutions to de-risk projects; and a growing portfolio of local credit enhancement facilities, which unlocks domestic institutional capital for infrastructure financing.
Since 2002, PIDG has supported 211 infrastructure projects to financial close, which provided an estimated 222 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC.

About Axis Bank

Axis Bank is one of the largest private sector banks in India. Axis Bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture, and Retail Businesses. With its 5,152 domestic branches (including extension counters) and 15,806 ATMs across the country as on 30th September 2023. The network of Axis Bank spreads across 2,864 centres, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Axis Group includes Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge, Axis Pension Fund and Axis Bank Foundation.

About Everest Fleet

Everest Fleet Pvt Ltd, founded in October 2016, is a leading fleet management company with a strong presence in the market. In a short time, it has grown into one of the largest fleets in India and is Uber’s largest professionally managed fleet supplier in India. Everest owns a fleet of 15000+ Cars operating in 7 cities which include Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, and Bangalore. These are 100% clean green fuel cars (CNG and Electric) that are running on ridesharing platforms in India.