In a significant development for the electric vehicle (EV) financing sector, Ascend Capital announced on Wednesday that it has successfully secured Rs 50 crore in a Series A funding round. The funding round was spearheaded by InfoEdge Ventures and Asha Ventures, marking a pivotal moment for the burgeoning startup.
Ascend Capital intends to utilize the newly acquired capital to bolster its loan book expansion initiatives. The company is poised to leverage these funds strategically to fuel its growth trajectory, aiming to surpass Rs 300 crore in assets under management within the next two years.
Established in 2018 by industry visionaries Gaurav Maheshwari and Lokesh Chandra, Ascend Capital has emerged as a prominent player in the domain of tailored financing solutions for customers seeking to invest in new commercial EVs. The company’s commitment to providing customized loan offerings has garnered significant traction, with a notable track record of disbursing over 9,000 loans amounting to Rs 90 crore in total value, as disclosed by Maheshwari in an exclusive interview with YourStory. Presently, Ascend Capital manages assets worth Rs 50 crore, indicative of its steady growth trajectory and market presence.
Commenting on the successful funding round, Pramod Bhasin, Co-founder of Asha Ventures, expressed confidence in Ascend Capital’s potential for expansion. Bhasin emphasized the company’s strategic positioning as a leading platform for financing Level 3 (L3) and Level 5 (L5) EVs in the foreseeable future.
The evolving landscape of EV financing is underscored by a notable trend observed by industry experts. According to OTO Capital, a staggering 63% of financing for EV two-wheelers is facilitated by fintech startups, with traditional banking institutions contributing to the remaining portion. Notably, the unique nature of underwriting EV assets necessitates a comprehensive understanding of crucial factors such as battery technology and vehicle build quality.
Ascend Capital has proactively addressed these challenges by implementing robust underwriting methodologies, leveraging insightful data on Original Equipment Manufacturers (OEMs) to enhance loan disbursal efficiency. By leveraging a meticulous checklist derived from OEM data, Ascend Capital is able to streamline its underwriting processes, ensuring informed decision-making and optimized loan management practices.
Amidst the competitive landscape of the EV financing sector, Ascend Capital faces formidable competition from industry peers such as Vidyut Tech, OTO Capital, RevFin, and Greaves Finance, among others. However, the company’s strategic vision, coupled with its commitment to innovation and customer-centricity, positions it favorably for sustained growth and market leadership.
As Ascend Capital embarks on its next phase of expansion fueled by the Series A funding infusion, the company remains steadfast in its mission to revolutionize commercial EV financing and drive the transition towards sustainable mobility solutions. With a firm commitment to excellence and innovation, Ascend Capital is poised to redefine the paradigm of EV financing, empowering businesses and individuals to embrace the transformative potential of electric mobility.
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