Axis Bank extends loan to Vivriti Capital to boost eMobility in India

By Gloria Mathias

Axis Bank in partnership with GuarantCo, a part of the Private Infrastructure Development Group (PIDG), has extended an INR 2.5 billion ($30 million) three-year loan to Vivriti Capital to expand its portfolio by lending to companies operating in the eMobility ecosystem in India.

GuarantCo has provided a 50% on-demand credit guarantee to Axis Bank for this transaction.

This guarantee is provided under the $200 million (INR equivalent) framework guarantee agreement, which is signed by Axis Bank and GuarantCo to allow the mobilisation of funds between $300 and $400 million (INR equivalent) to finance the e-mobility ecosystem in India.

Axis Bank has closed this transaction under the framework agreement with GuarantCo which was announced under an MoU during COP26 in Glasgow in November 2021.

The financing solution provided by Axis Bank and GuarantCo to Vivriti Capital, is estimated to increase the number of electric vehicles and charging stations deployed which will reduce CO2 emissions and contribute towards progressing the SDGs in India.

Rajiv Anand, Deputy Managing Director, Axis Bank said, “Axis Bank is committed to driving sustainable transformation within India’s e-mobility sector. Our partnership with GuarantCo empowers us to extend crucial financial support to Vivriti Capital, thereby aligning with our commitment to drive positive environmental outcomes while empowering communities. Through this blended finance structure, we aim not just to fuel innovation in the e-mobility ecosystem but also to significantly impact climate change by reducing carbon emissions in our country. ”

Vineet Sukumar, Founder and Managing Director, Vivriti Capital Ltd, said, “We are proud of this collaboration with Axis Bank and GuarantCo as we will actively contribute to fostering economic growth and sustainability. This will fuel our efforts to expand our green portfolio in India’s e-mobility landscape as the government pursues the target of EV30@2030. Vivriti Group’s mission is to enable necessary debt finance to India’s mid-market ecosystem. We are not just building a business; we are building a world where financial success aligns seamlessly with environmental and social responsibility”.