Electric Vehicles see massive demand for pay later solution on ZestMoney
Tier II and III towns contribute 70-80% of the total demand 500% month-on-month growth in EV segment
Chandigarh: ZestMoney, India’s leading AI-driven EMI financing and “Buy Now Pay Later” (“Pay Later”) platform has observed a 500% month-on-month growth in customers opting for the Pay Later solution for Electric Vehicles (EV). The number of EV dealers on ZestMoney’s platform have increased from 300 in July to 4,500 in November.
The demand for electric scooters has increased over the last few months as people want to own a personal vehicle. With COVID-19 and need for social distancing, people are opting for low-cost electric vehicles to meet their transportation needs.
ZestMoney has observed that Uttar Pradesh contributes 30% to the total business from EV, followed by the states of Bihar, Rajasthan and Maharashtra. The purchases are largely within the age group of 25-35, with 10% of women opting for EV scooters.
Interestingly, EVs are gaining increasing traction in Tier II, III and IV towns where many new-to-credit customers are opting for the convenience of Pay Later solutions. These markets are driving 70-80% of the total demand.
Low Speed scooters that pick-up speed of 25 km/hr and do not need registration with the transport authorities constituted 90% of all the electric two-wheelers sold in FY19-20. While many traditional financiers are averse to financing the electric scooters which do not have the registration number, ZestMoney has gone and the Pay Later financing available for this segment of EV - the first of its kind financing in this space.
Commenting on the development, Lizzie Chapman, CEO & Co-founder at ZestMoney said, “The pandemic has augmented the demand for electric vehicles with people wanting to skip public transportation. At ZestMoney, we see a massive opportunity in financing for this segment, particularly in smaller towns where customers may not have a past credit record or a traditional credit score. Our Buy Now, Pay Later solution offers them the perfect flexibility to spread the cost which is great financial planning too. Since many are availing credit for the first time, we are helping them build their credit score for large ticket loans they may need later. The EV industry is taking shape and we at Zest strongly believe that despite COVID-19, FY 20-21 will be a defining year for the EV segment.”