AMU Leasing’s focus on serving the underserved market of individuals and fleets looking for financing for electric 3-wheelers and 2-wheelers:
AMU Leasing is a tech-enabled NBFC that focuses on financing electric vehicles. It is perhaps India’s only woman-led NBFC exclusively serving the electric vehicle ecosystem. Nehal Gupta, Director of AMU Leasing, is a third-generation business owner. She did her graduation from Indiana University’s Kelley School of Business, with a double major in marketing and supply chain management.
Mehul Dani: What factors are driving the growth in the business? How has product innovation boosted business?
Nehal Gupta: Our company experienced an annual growth rate of 106.75% in our business during the JFM 2023. Our focus on serving the underserved market of individuals and fleets looking for financing for electric 3-wheelers and 2-wheelers has played a significant role. Many of these potential customers don’t have access to traditional loans from established banks, and we’ve bridged this gap by providing tailored financial solutions.
Our company’s focus on product innovation has been a key driver of increased business. We have introduced innovative features in our loan processing and payment collection systems. One major innovation is the use of equated monthly installments (EMIs) and equated daily installments (EDI) to ease the burden of payments for our customers. This flexible payment approach has increased convenience and encouraged timely repayments.
How do new major products & services introduced by your company differ in features, processes, TAT with those running earlier?
We have made significant improvements in terms of automation and speed. Our AI-driven loan approval process, which provides results within 30 milliseconds, is a prime example of this. Moreover, we have enhanced our remote immobilization and safety alert services, contributing to the overall value proposition for our customers. Leasing has been introduced to ease the business operations and ownership obligations of clients. We are also exploring electric vehicles outside 2/3Ws like buses, trucks, retrofitted vehicles, battery financing, etc, to support the entire EV ecosystem holistically.
Who are your strategic partners in banks, NBFCs, SHGs, BCs, MFIs? Who are your biz partners and tech partners?
Strategic tie-ups for tech are with Proviner, AllCloud; banking partners are SBI & HDFC; our BCs are Paytm, Airtel, Fino and our partners in insurance are Bajaj Allianz and Royal Sundaram. Co-lending / funding with NBFCs is in pipeline.
How has technology proved to be a good enabler for business growth?
Our use of advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) has been crucial in enabling efficient and accurate risk assessment for loan approvals. We use AI and ML algorithms to analyze applicants’ KYC documents and evaluate their repayment capability quickly. This has streamlined our loan approval processes and reduced the time required for decision-making.
Additionally, our strategic partnerships with UPI banks like Paytm and merchant banks like Airtel have facilitated seamless payment collections, contributing to customer satisfaction and prompt repayments. By catering to tier 2,3 & 4 regions, we have addressed the specific needs of these customers and built a strong rapport with them.
What are your targets and plans for business growth and branch expansion, as well as for partnerships?
Our targets and plans for business growth in the current fiscal year are ambitious yet strategic. We are focused on expanding our presence by entering new markets and regions. With an eye on tier 2 & 3 cities, we aim to tap into the potential of these markets for EV financing. Additionally, our plans include rationalizing our branches to optimize our operations and enhance efficiency, ensuring that we can effectively manage our growth, while maintaining a high level of customer service.
Our target is to increase total AUM by 42% by March 2024, have a total service base of 10,000 customers and open 2 new branch offices across North & South East India. We are also planning larger service expansion for both retail and corporate clients across 9 states in India.
Our targets and plans for partnerships and tie-ups remain aligned with our overarching business strategy. We are committed to exploring and establishing partnerships with top-notch national banks and high-net-worth individuals to facilitate credit growth. These strategic collaborations will play a pivotal role in achieving our goal of financing 1 million EV stakeholders by 2030.