PHF Leasing Limited has distinguished itself as a leading player in electric rickshaw financing through a combination of a diversified product portfolio, strong market leadership, and a commitment to supporting underserved communities, says Shalya Gupta, CEO, PHF Leasing Limited in an interview with Anurima Mondal, Editor of EVolution Auto India.
Q: Please walk us through the business journey of PHF Leasing Limited along with its major milestones and crucial achievements.
Shalya Gupta: Founded in 1992 and headquartered in Jalandhar, Punjab, PHF Leasing Limited is an NBFC listed on the Metropolitan Stock Exchange of India since 2018.
Initially, the company focused on financing two-wheelers and old four-wheelers. In 2020, the company diversified its product line to include mortgage loans (LAP), following a major rebranding and coming in of new investment. This growth-oriented approach led to an increase in AUM from INR 10.28 Crore in March 2020 to over INR 108 Crore by the end of the 2022-23 fiscal, and INR 212 Crore by the end of 2023-24. The company holds a Crisil BBB- rating. Today, the team has expanded to 500 employees.
PHF is committed to women’s empowerment by providing MSME loans to women entrepreneurs and mandating women as co-borrowers across all financing products.
PHF started EV financing in January 2023, initially in districts across Punjab—Jalandhar, Kapurthala, Amritsar, Tarn Taran, and Ludhiana. Currently, we operate in 11 states and offer EV financing products all across.
Q: Could you shed some light on the services provided by PHF Leasing Limited?
Shalya Gupta: We provide a wide range of loan services which includes
- Home Loan
- Vehicle Loan
- Education Loan
- Solar Panel Loan
- Electric Charger Loan
- E-vehicle Loan
- Loan Against Property (LAP)
- MSME Loan
- Inverter Battery Loan
In addition, we engage with customers constantly and provide them with solutions for all their issues – be it school fee financing, medical loans, wedding loans, etc., by offering top-up loans.
Q: Last month, PHF Leasing Limited made the headlines for widening its electric vehicles loan portfolio. Please tell us more about this crucial step and expectations.
Shalya Gupta: PHF Leasing Limited has expanded its electric vehicle loan portfolio to include electric two-wheelers, used e-rickshaws, and L5 electric cargo vehicles, in addition to its existing loans for e-rickshaws, e-loaders, and L3 electric vehicles. Loan terms for L5 vehicles are up to 3.5 years, while other categories range from 6 months to 1.5 years.
As a leader in e-rickshaw financing, this comprehensive EV financing portfolio offers customers a wide range of options. The company is committed to providing loans to underserved sections of society, aiming to help them achieve self-reliance.
In FY 22-23, we processed 1,110 cases of electric vehicle loans amounting to INR 11.31 Crore. By FY 23-24, this number soared to 8,841 cases, with the loan amount reaching INR 100.32 Crore. This represents a staggering 696 percent increase in the number of cases and an impressive 787 percent growth in loan amount year-over-year.
These impressive growth figures underscore the strong demand for electric vehicles and PHF Leasing’s pivotal role in facilitating their adoption. By expanding its loan portfolio, the company aims to further support the increasing demand for electric vehicles, promote sustainable transportation, and empower more individuals and businesses to transition to cleaner energy solutions. Expectations are high that this initiative will not only enhance the company’s market presence but also contribute to broader environmental and economic benefits.
Q: What have been the other recent developments at PHF Leasing Limited?
Shalya Gupta: On April 16, PHF Leasing raised USD10 Million through a mix of 60 percent equity and 40 percent debt. The funds will support the company’s aggressive growth.
Sales rose 66.01 percent to INR 10.89 crore, and net profit increased 63.16 percent to INR 0.93 Crore for the quarter ended March 2024 compared to the same period in 2023. For the full year, net profit rose 235.34 percent to INR 3.89 crore, and sales increased 95.26 percent to INR 34.64 crore compared to the previous year. The company has onboarded Northern Arc as new debt partner.
Q: PHF Leasing has established itself as a leading player in electric rickshaw financing. What sets you apart from your competitors? What are your long-term plans?
Shalya Gupta: PHF Leasing has distinguished itself as a leading player in electric rickshaw financing through a combination of a diversified product portfolio, strong market leadership, and a commitment to supporting underserved communities.
Here’s what sets us apart from our competitors and our long-term plans:
Diverse Loan Products:
- We offer a comprehensive range of loan products for electric two-wheelers, new and used e-rickshaws, and L3 & L5 eLoaders and electric cargo vehicles.
- This enables us to cater to a broad spectrum of customer needs
- We offer flexible loan terms ranging from 6 months to 3.5 years.
Market Leadership:
- Our established leadership in e-rickshaw financing is backed by our rapid growth and innovation.
- We recognize the potential in various EV categories and continuously introduce new products to meet evolving market demands.
- Starting our EV financing in January 2023, we initially focused on key districts in Punjab and have since expanded to 11 states and Union Territories.
Commitment to Social Impact:
- We are dedicated to supporting underserved communities by providing accessible and affordable financing options.
- Our initiatives include focusing on women’s empowerment by offering MSME loans to women entrepreneurs and mandating women as co-borrowers in all our financing products.
We have also created Long-Term Plans in line with our strategic growth goals:
Expanding EV Financing:
- We aim to further expand our presence across India to support the growing demand for electric vehicles.
- Our extensive portfolio and strong market presence positions us to drive significant adoption of EVs, contributing to the reduction of vehicular emissions in high-emission cities like Ludhiana, Jalandhar, Patiala, Amritsar, Bathinda, and Mohali.
Contributing to Emission Reduction:
- Recognizing the Government’s goal of achieving 30 percent EV penetration by 2030, we are committed to facilitating this transition.
- By providing financing solutions that make EVs accessible and affordable, we support the government’s efforts to reduce emissions and promote sustainable transportation.
- If we look at Vahan 4 data, Punjab has only 34,162 EVs (0.26% of registered vehicles), highlighting the potential for growth. Nationally, 27,44,019 EVs account for 0.81 percent of registered vehicles, showing a broader scope for increasing EV adoption.
Supporting Sustainable Growth:
- Our financing options enable the transition to electric vehicles, which reduces carbon emissions and promotes environmental sustainability.
- We focus on financing electric two-wheelers, used e-rickshaws, and electric cargo vehicles to support the government’s vision of increased EV penetration.
Empowering Local Entrepreneurs:
- We aim to continue supporting local entrepreneurs and small businesses by offering tailored financial products that promote self-reliance and economic growth.
- By empowering individuals with the financial tools needed to adopt sustainable transportation solutions, we drive both economic and environmental benefits.
We, at PHF Leasing, differentiate ourselves through a comprehensive loan portfolio, market leadership, and a commitment to social impact. Our long-term plans involve expanding EV financing, contributing to emission reduction, supporting sustainable growth, and empowering underserved communities. This positions us to continue leading the market in electric rickshaw financing and beyond.
Q: The current Indian government has set a target of achieving 30 percent electric vehicle penetration by 2030. What are your views on the EV industry?
Shalya Gupta: The Indian government’s target of achieving 30 percent electric vehicle (EV) penetration by 2030 is a commendable and an ambitious goal that aligns with global efforts to promote sustainable transportation. At PHF Leasing, we view this target as a significant opportunity to drive positive environmental impact, economic growth, and technological innovation.
Our views on the EV industry:
Transformative Potential:
- The EV industry holds immense potential to transform the automotive landscape in India. By reducing carbon emissions and decreasing dependence on fossil fuels, EVs contribute to a cleaner and greener environment. This transformation is significant as it helps mitigate air pollution, which is a major public health issue in many Indian cities. Improved air quality can lead to better health outcomes, reducing the incidence of respiratory and cardiovascular diseases among the population.
- The shift to electric mobility also aligns with global sustainability goals and India’s commitments under the Paris Agreement.
- In addition, the adoption of EVs can stimulate economic growth by creating new job opportunities in the manufacturing, maintenance, and charging infrastructure sectors. This can lead to skill development and innovation, fostering a new ecosystem around electric mobility. Overall, the widespread use of EVs promises substantial societal benefits, including improved public health, environmental protection, and economic resilience.
- The transformation potential of EVs is significant, with zero tailpipe emissions offering a breath of fresh air, government incentives making them more affordable, a growing charging network easing range anxiety, lower running costs putting money back in pockets, and a wider variety of vehicles catering to diverse needs. The availability of EVs is increasing, with more manufacturers offering electric two-wheelers, three-wheelers, and four-wheelers, giving Jalandhar residents a wider range of choices to suit their needs. With this transformation, electric vehicles have the potential to replace traditional vehicles on roads, leading to a cleaner and more sustainable future for the cities, towns and the whole country.
Economic Benefits:
- The adoption of EVs can spur economic growth by creating new jobs in manufacturing, charging infrastructure, and maintenance services.
- As the industry grows, it will attract significant investments, fostering innovation and technological advancements in battery technology, charging solutions, and vehicle design.
Government Support and Incentives:
- The Indian government’s support through incentives and subsidies for EV buyers, as well as investments in charging infrastructure, is crucial for accelerating adoption.
- Policies that promote local manufacturing and R&D in the EV sector will enhance India’s competitiveness in the global market.
Long-Term Commitment:
- Our long-term plans involve continuing to support and invest in the EV industry, contributing to India’s green mobility goals.
- By driving the adoption of EVs, we aim to reduce vehicular emissions, improve air quality, and create a sustainable future for the next generation.
We are really optimistic about the future of the EV industry in India. The government’s 2030 target is a critical step towards a sustainable transportation ecosystem, and PHF Leasing is dedicated to playing a key role in achieving this vision through our innovative financing solutions and unwavering commitment to sustainability.