As one of the most significant greenhouse emitters across the globe, one of India’s most pressing environmental challenges is air pollution. A significant portion of the country’s air pollution is attributed to vehicular emissions. The growing air pollution due to the usage of traditional fuel-based vehicles has led to a surge in demand for Electric Vehicles. The fast-growing infrastructure as well as various government initiatives to boost the EV sector has helped the Indian EV sector experience tremendous growth in recent years. Keeping the changing automotive landscape of the country in mind, Vikas Jain and Ajay Agarwal decided to disrupt the EV leasing sector in the country by establishing Driveo Electric Mobility. Established in early 2023, Driveo aims to promote sustainable mobility, especially in the Indian B2B transportation sector, through a comprehensive full-stack EV ecosystem for its customers.

In an exclusive interview with CIO Insider, Vikas sheds light on the inception story of Driveo, the unique value additions offered by the firm, and much more:

Tell us about the inception story of Driveo. Describe its brand persona & what it represents.

During my 17 year tenure with Mahindra Finance, I was instrumental in establishing various departments, including SME Financing, Channel Financing, and so on, and was also a founding member of B2B Leasing vertical at the company. While establishing the B2B Leasing department at Mahindra Finance, I observed that although an operating lease is a prevalent form of vehicle ownership globally, the Indian market lacks dedicated operating lease providers. Recognizing this gap, we saw an opportunity to disrupt the vehicle ownership model in India, particularly in the commercial leasing sector. A deeper analysis revealed that an operating lease model would be one of the most suitable options for B2B customers in EV vehicle ownership.

Consequently, Driveo was established to offer an affordable and accessible EV Ecosystem to fleet operators. We have

positioned ourselves as a Next-Gen EV Player with EV leasing products, Differentiated Underwriting, Full stack EV Technology and Asset Management from Vehicle Procurement to vehicle resale.

Since our inception in 2023, our journey over the past year and a half has been remarkable. This growth is complemented by an impressive customer retention rate of over 90 percent, underscoring our commitment to excellence and customer satisfaction. We aim to deploy 2000 vehicles by the end of FY25.

to draw positive outcomes.

Recently, a Bengaluru-based customer, who managed a small fleet of 20 diesel vehicles and specialized in employee transportation and vehicle mana- gement, sought to transition into the EV segment. His customer had mandated that at least 25 percent of the fleet be converted to EVs or they would seek out another operator. Despite extensive research on vehicles, costs, maintenance, charging, and resale value, he was unable to even provide a quote for operating EVs to his customer. He reached out to us through a reference from one of our existing customers. Based on his requirement of 3,000 km per month, we guided him in selecting the ideal Electric Vehicle and provided a detailed yearly operational cost analysis for 3 to 8 years to understand the operating margins. We further supported him by guaranteeing operational costs from our end to give him confidence in EV adoption. As a result, he was able to secure the contract with his customer for EV deployment.

When his client requested APIs to access vehicle information for route mapping, we supplied that as well through our EasyV fleet management platform. Additionally, we facilitated access to our partnered charging network, which offered more competitive charging costs. Although the initial deployment consisted of just 5 vehicles, our data-driven underwriting through the EasyV platform allowed us to expand the fleet by an additional 15 EVs within a few months. The customer is now so confident in EVs that he is actively pursuing other EV contracts for employee transportation.

What is the role Driveo has envisioned to take in the near future? What is the level of impact it strives to bring to the market?

The Indian Commercial EV market is estimated to reach $17 billion by 2030. Driveo was founded with a clear mission to accelerate the adoption of electric vehicles within the commercial sector. Our goal is to drive this transformation by enhancing profitability for our customers while promoting sustainability through advanced technology.

We primarily deal with vehicles of battery size of 11 kilowatts and above, which includes three-wheeler cargo, four-wheeler cargo, and four-wheeler passenger vehicles. Over the next three years, we are committed to deploying 50,000 EVs and establishing ourselves as one of the largest EV leasing firms in the industry. Additionally, we aim to redefine the ownership model for commercial EV customers, leading the charge in industry innovation.