NEW DELHI, 19th August 2025:“Fintech-led innovation isn’t just about progress; it’s the key to driving India’s green future,” says Nehal Gupta, Accelerated Money For U’s Founder and Managing director.
In her contribution to the EV Story’s Change4Progress Special Series, she argues that the country’s transition to electric vehicles (EVs) will be determined not only by the number of vehicles on the road, but also by how creatively the financing ecosystem adapts to meet demand.
Marking her views on the Independence theme, Gupta sees this transition as more than just an industrial change; she sees it as a renewal of freedom: freedom from fossil fuel dependence, the shocks of imported energy, and the pollution that harms urban health and productivity.
AMU, a company that specialises in financing L3 and L5 category vehicles, provides competitive rates and flexible terms that align with customers’ mobility needs. It finances fleet operators, gig-economy drivers, and small entrepreneurs who face prohibitively high upfront costs, while traditional lenders are hesitant to extend credit.
Batteries account for 30 to 40 percent of the cost of an electric vehicle, and with uncertain resale values and limited secondary markets, banks and non-banking financial companies (NBFCs) perceive a much higher risk than conventional vehicle loans. For borrowers with limited credit histories—particularly in the two- and three-wheeler segments—the challenge is even steeper.
“Despite an increase in adoption, EV penetration increased from 5.6% in FY 2022-23 to 7.8% in FY 2024-25, but financing remains the sector’s most significant challenge,” says Gupta, who believes the solution lies in reimagining the structure of EV financing.
Fintech startups are already experimenting with usage-based repayment models, which tie equated monthly instalments (EMIs) to operators’ actual cash flows, ensuring that repayment schedules adjust in response to business performance.
Risk-sharing mechanisms, such as First Loss Default Guarantees (in which startups assume a portion of the credit risk), are encouraging lenders to diversify their portfolio.
The growing popularity of battery-as-a-service and battery-swapping models is further lowering upfront costs, while automakers’ buyback contracts and extended warranties reassure financiers about long-term asset values.
But Gupta insists government incentives must be smarter—moving beyond blanket subsidies to targeted risk frameworks, like payment security for e-bus fleets or classifying EV loans under Priority Sector Lending. Only with blended public and private sector creativity, she argues, will capital flow into India’s transport transformation at the scale needed.
By combining targeted government incentives with private sector innovation, she argues, India can reduce risks in the ecosystem and attract the level of capital necessary to achieve its net-zero goals.
The stakes are high. Between 2020 and 2024, EV adoption in India has already helped prevent 10 million tonnes of carbon emissions. However, to reach the 2030 targets, the pace of adoption must increase, and this can only happen if financing solutions evolve as quickly as the technology itself.
“The combination of high upfront costs, extreme lender risk aversion, and a lack of creative financial models is slowing India’s electric future,” Gupta cautions. “However, if fintech companies, NBFCs, original equipment manufacturers (OEMs), and policymakers work together, we can develop a financing structure that encourages both growth and sustainability.”
“The combination of high upfront costs, extreme lender risk aversion, and a lack of creative financial models is slowing India’s electric future,” Gupta warns. Her solution: fintech startups, NBFCs, manufacturers, and policymakers working together to make ownership accessible.
Gupta believes that the EV transition will make sustainability a viable option for all Indians. “Today, freedom is more than just politics. It’s the freedom to breathe cleaner air, avoid volatile imports, and choose how we travel. She says that “financial innovation is the true path to India’s green future.”
