Turno, an Indian commercial electric vehicle distribution and financing platform, has raised $13.8 million in a Series A funding round. Series A was co-led by venture firms B Capital and Quona Capital.
The round also witnessed participation from existing investors Stellaris Venture Partners and Avaana Capital and new investors Alteria Capital and InnoVen Capital.
In response to widespread concerns that EV batteries contribute to e-waste, Turno will utilize the additional funding to develop a proprietary battery tech platform, expand its electric vehicle distribution network across India, and solve challenges related to end-of-life battery value.
It is currently the only platform in India that offers commercial EV buyers a complete total cost of ownership solution. Its unique EV sales platform in its online and physical storefronts offers a multi-brand variety of vehicles at the lowest prices, the most affordable financing options, and a buy-back value guarantee on used batteries supported by its battery technology.
Compared to other EV purchase choices currently available, Turno’s flagship product reduces the overall ownership expenses for customers by 30 percent.
The Pain Points
Commercial vehicle owners are willing to switch from internal combustion engine (ICE)-powered vehicles to EVs because of the numerous incentives offered and the government’s backing. Still, the initial cost of a new commercial EV unit is a significant obstacle.
Most EV buyers have to hunt for loan options due to the high upfront costs of these vehicles, which are rarely available in a market dominated by financiers supporting ICE vehicles. When disbursing a vehicle loan in India, most lenders rely on asset value, and financing is computed based on the vehicle’s depreciation.
However, the market for electric vehicles is still in its infancy and the practice of financing based on a borrower’s credit score is still uncommon in the auto financing industry.
As a result, lenders demand sizable down payments and high-interest rates for financing commercial EVs because they are concerned about the depreciation value of EVs and cannot quantify it because the market is still in its infancy. As a result, affording commercial EVs are out of reach for most people, especially SMEs.
“Commercial EV sales are heavily dependent on the availability of attractive financing options and the Indian market is plagued by a lack of true customer-centric options. Turno has identified a key missing element in the ecosystem that solves the problem of financing and distribution and servicing,” said Karan Mohla, general partner of B Capital and head of early-stage investments in India and SEA.
Turno uses technology to mitigate the EV financing hassles
Turno was established in January 2022 by Hemanth Aluru and Sudhindra Reddy (ex-Zoomcar CXOs). It is active in Karnataka, Telangana, Tamil Nadu, Delhi NCR, and Maharashtra, covering the country’s major markets in the South, West, and North.
The company has a 20 percent market share after being founded as a one-stop shop to increase the availability and affordability of commercial electric vehicles in India.
Turno provides cutting-edge technological advancement that enables it to work significantly better with SMEs. The company’s platform establishes the initial connection between SMEs and EV producers, offers loans to finance a new purchase, and ensures the purchaser will receive at least a minimal resale value in the future.
Turno’s knowledge of the electric battery market underpins its value offer. While EV batteries may no longer be fit for use in automobiles after, say, five years, they can be repurposed as fixed assets in places like data centers and infrastructure installations. This study has uncovered a sizable resale market for EV batteries.
According to a press release from the company, customers who buy EVs through Turno get a “Vehicle Lifecycle Management” app that gamifies and rewards good driving habits to extend battery life.
To market their vehicles around the nation, the business has many national-level relationships with top 3W electric vehicle producers, such as Mahindra & Mahindra, Piaggio, Omega Seiki Mobility, and Etrio.
