Automotive Startups – loan and funding

Vehicle manufacturers have begun closely working with startups, this trend was not seen three years back.   However many large manufacturers are also skipping the Auto Export events.

Bajaj Finserve and many banks are providing loans to startups.  In case the startups are confident of their products, have capacity to scale up, then the loans can be availed. 

Lending Startup Happy has been supporting  multiple MSME’s as lockdown loan.

SIDBI has set a fund of near 200 INR Crores to support the startup ecosystem.  For entrepreneurs who are not getting investments, debt capital is also an option to consider. This helps individuals who wish to set up manufacturing units.

Startups need to have good business plan with clear cash flow projections and preferably a 4-5 period within which they can repay loan. 

The Mumbai-based startup OTO Capital claims to offer a 30 percent lower rate than current motorcycle loans available in the market. So there are also opportunities created to improve more vehicle sales, through various strategies.

Both the Non Banking Finance Companies and few banks are opening up to support funding startups.

Autonebula is a connected transportation vehicle accelerator and investment fund that nurtures startups in this realm by mentoring them across business, technology & marketing – Check out Softlanding with Autonebula