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.”