Zypp Electric: Building a Sector View on EV Lending in India
Analyzed an EV lending deal and developed an independent view on where the sector is headed
Moin Chunawala
Associate at Northern Arc Capital
From their time as
Associate
Northern Arc Capital • 2024
Overview
Moin analyzed Zypp Electric as part of his deal work at Northern Arc. Zypp Electric provided electric vehicles to gig workers on a lending or rental basis, sitting at the intersection of EV adoption, gig economy financing, and sustainability.
The Story
Moin analyzed Zypp Electric as part of his deal work at Northern Arc. Zypp Electric provided electric vehicles to gig workers on a lending or rental basis, sitting at the intersection of EV adoption, gig economy financing, and sustainability.
The deal required him to assess both the credit risk and the sector dynamics. He mapped the EV lending market, looking at the economics of lithium battery costs, the trajectory of combustible engine parity, and the policy tailwinds supporting EV adoption in India.
His research led him to a formed view on the sector: EV lending in India is heading toward a significant growth phase, driven by rising awareness of climate impact and improving unit economics. He identified the lithium cost curve as the key variable, noting that there will be a breakeven point where running an EV becomes cheaper than a combustible engine vehicle, and that the lending market will expand materially as that point approaches.
The deal was approved and Northern Arc extended a loan to Zypp Electric. The analysis also contributed to a broader orientation within his portfolio toward sustainability-linked lending.