Three Wheels United

Three Wheels United (TWU) is a Bengaluru-based fintech that finances light electric vehicles (LEVs) for low-income drivers in India, primarily auto-rickshaw operators and micro-entrepreneurs. It offers two main retail products: an electric two-wheeler loan (base price around ₹56,000, monthly instalment quoted at ₹2,900, tenure up to 36 months) and an electric three-wheeler loan (base price around ₹3,27,000, monthly instalment quoted at ₹12,700, tenure up to 60 months), both with funding of up to 100% of the vehicle cost. Loans are disbursed through its lending partner Shabri Investments Private Limited, a non-banking financial company registered with the Reserve Bank of India, and approvals are subject to that partner's underwriting policies. Interest rates have been described at roughly 20-23%, below what the company says traditional financiers charge, and are extended without collateral or guarantee.

The company positions itself as taking an ecosystem approach rather than pure lending. Alongside credit, it provides a mobile application for registration, loan application, loan management and repayment, plus a driver community feature that connects users to charging points, service stations and regional transport offices. It also runs financial literacy workshops, negotiates work supply for drivers through tie-ups with ride-hailing and delivery platforms (Uber and BigBasket have been cited), connects drivers to OEMs, relays driver feedback to manufacturers, partners with charging and battery-swapping vendors, and in 2020 arranged a buy-back/scrappage scheme with Mahindra Electric for vehicles older than ten years. Financed vehicle models listed include Ape E City, Ape E Cargo, Euler HiLoad EV, Mahindra Zor Grand, Mahindra Treo Plus, Mahindra Treo Auto, Montra and OSM Rage Plus, in addition to electric two-wheelers.

Following its 2022 Series A, the company's About page identifies it with Delta Corp Holdings, an asset-light integrated group engaged in transportation and logistics services, fuel supply, asset management, energy transition and maritime supply chain services.

Founding story

Founder Cedrick Tandong first came to India on a TCS project as a business analyst covering the FMCG sector in France, and after three years with the IT company returned to India in 2014 intending to build a business serving lower-income segments, drawing on his upbringing in Cameroon. Through conversations with auto-rickshaw drivers he found that around 70% were renting vehicles at high rates and struggling to profit, which led him to the idea of affordable vehicle-ownership loans. At a social-entrepreneurship programme in Bengaluru he met Ramesh Prabhu, who ran an NGO named Three Wheels United that helped drivers obtain bank loans; six months later Prabhu's investors withdrew over scaling concerns. Tandong, who had joined to help run operations, recruited Kevin Wervenbos — an investment director at Enviu and an investor in the original entity — as co-founder, and by 2017 relaunched Three Wheels United as a fintech: exiting bank partnerships, acquiring an NBFC and lending exclusively for electric vehicle purchases. Apurv Mehta, who had worked at Microsoft while TWU built its technology there, joined in 2019 as co-founder and CTO. Press coverage of the 2022 round cites Cedrick Tandong, Kevin Wervenbos and Apurv Mehta as founders with a 2017 founding date, while Inc42 records the registered entity as founded in 2016.

Business model

TWU originates and services vehicle loans for low-income drivers, with disbursal through its NBFC lending partner Shabri Investments Private Limited. It couples credit with a mobile app for application, loan management and repayment, and with services such as work-linkage tie-ups, charging and battery-swapping partner access, and financial literacy programmes. Loans cover up to 100% of the vehicle cost without collateral, with risk managed by helping drivers secure sufficient daily earnings and by structuring three- to four-year repayment plans.

The company earns interest on the loans it extends and also collects a marketing fee. Inc42 reports revenue of ₹1.1 lakh in FY21, down 52.2% from ₹2.3 lakh in FY20.

Traction

Company website figures cite 4,000+ vehicles financed, 20,000+ customers served, 3,277 tonnes of CO2 reduced and $71M+ in extra income generated for drivers. Inc42 lists an employee count of 27 (with one page citing 37) and FY21 revenue of ₹1.1 lakh. At the time of the 2022 Series A the company stated plans to launch a two-wheeler category and expand into ten more cities within that year.

Latest developments

In May 2022 the company announced a $10 million Series A combining equity and debt, led by Delta Corp Holdings with participation from existing investor Techstars, Grip Invest, and investors in the Middle East and Europe; funds were allocated to new geographies in India and internationally, strengthening existing city operations, platform development and customer growth. Company materials now present Three Wheels United as part of Delta Corp Holdings.