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Three Wheels United
Three Wheels United
fintech
saas
big data

We are using technology enhanced finance to provide green asset financing to low-income SMEs – the auto rickshaw drivers Our innovative financial technology has allowed us to reduce default rates from 30% in the market to less than 1%, making us both scalable and profitable. In the case of India, as with many other countries in the Global South, many SMEs such as the auto rickshaw drivers do not have access to finance due to a phenomenon known as the missing middle - In which micro finance institutions can only provide small ticket sizes while banks operate on a low touch model. This leaves more than 70% of the 12M auto rickshaw drivers renting a vehicle, leaving them unable to operate a low-carbon vehicle. This leads to more than 23M tonnes of CO2 annually being emitted by the 6M auto rickshaws currently in India. In order to bridge this gap, we have developed innovative financial technology, in partnership with Microsoft Research, that allows us to mitigate risks while financing the low-income auto rickshaw drivers. We club this technology with proven micro finance methods, allowing us to provide a loan to purchase a smart electric vehicle. We use alternative credit ratings mechanisms, leveraging this technology to offer this loan at a highly competitive rate, covering the entire cost of the vehicle, without the requirements that typically disqualify an auto rickshaw driver. We have already proven this to be highly effective by financing over 2000 vehicles with a default of less than 1%. By financing electric vehicles we are able to bring about the pollution and poverty reduction we seek by doubling driver income and replacing the highly pollutive two stroke vehicles. Each vehicle financed contributes to 65 tonnes of CO2 reduced over the life of that vehicle when shifting from a two stroke to an electric vehicle. Also, each vehicle we finance generates over 36 thousand USD of extra income for drivers as the drivers double their daily income. Drivers save even more when operating an electric vehicle compare to an internal combustion engine due to low operational and maintenance costs. Not only is our organization creating huge impact, but we are also making profits. We earn 3% net margin on loans outstanding and receive $150 commission from the manufacturer per vehicle sold, and we are seeking to license our fintech. We know this profit can be achieved on a large scale given such a huge market in India alone. In India over 500 thousand Autorickshaws are being sold year on year over the last 5 years, thus creating a market opportunity of nearly 1 billion USD each year. In the future we intend to license our financial technology to other financiers with low income clients and leverage this technology to provide other climate finance for SMES in the Global South. We are confident we can scale this solution to seize this massive lending opportunity through the partnerships we have secured, and by covering market building through grants. We have created partnered with Mahindra Electric-India's leading EV manufacturer. Financiers such as BNP Paribas and with development banks FMO, USAID, AFD willing to provide a portfolio guarantee scheme. Metros for the deployment of electric vehicles as feeders, and Microsoft research as partner in developing the technology. And lastly, our Foundation (TWUF) is the market maker, funded by a grant from the European Union, and already has over 16 thousand drivers in the pipeline.
threewheelsunited.com
Bengaluru, Karnataka, India, Kammanahalli, Bengaluru, Karnataka, India, Kalyan Nagar, Bengaluru, Karnataka3, India
Founded in July 2017

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