HOW EV FINANCING SUPPORTS LAST-MILE DELIVERY STARTUPS

• Publish on Sep 10, 2025
• Read Time 5 mins

Why Last-Mile Delivery Startups are Accelerating with EVs

Did you know that last-mile delivery companies are now running the show with EVs? Whether it’s food, groceries, e-commerce, or logistics, urban and semi-urban businesses are betting on electric two- and three-wheelers to lower operating costs and meet sustainability mandates. Simply put, EVs let your business win the tri-marathon game of speed, cost, and delivery options.

However, owning an EV fleet outright isn’t always an easy pull for startups and gig-fleet operators. Solutions like EV financing have become a viable funding option that enables the chain of growth and savings to scale. Let’s see how green loans from NBFCs are making last-mile EV adoption a profitable choice.

Why EVs Make Sense for Last-Mile Startups

Startups in delivery or courier and aggregator models run lean operations. Every rupee spent on fuel, including maintenance and downtime, eats into their margins. Here’s where EVs become saviours:

• Lower fuel costs of EVs are ₹0.25–₹0.50/km vs. ₹2–₹3/km for petrol vehicles
• Minimal maintenance: Fewer moving parts mean fewer breakdowns and longer intervals between servicing
• Faster ROI: The cost difference is offset in less than 18 months for many fleet operators
• Sustainability compliance: Many urban centers now offer green incentives, zero-emission zones, and low-entry taxes for EVs

Bonus Read: Did you know that the youth of India are gradually moving towards electric vehicles?

The Challenge of Upfront Investment for Small Businesses

Despite the clear long-term savings, most startups struggle with the initial capital to make this operationally strategic shift.

• A cargo three-wheeler EV can cost anywhere from ₹2.5 to ₹3.5 lakh
• An e-scooter built for fleet work (high mileage, swappable battery) costs ₹1.2–₹1.8 lakh
• Many startups operate on weekly cash flows and lack formal credit history
• Traditional lenders ask for collateral, multiple co-applicants, or complex documentation

What Makes EV financing Startup-Friendly?

A number of NBFCs supporting India’s green energy shift have created foolproof digital systems to offer EV loans without collateral. In fact, most last-mile operators are first-time borrowers.

Consider Ecofy to get loans that don’t demand property documents or excessive formal assets. This 3-5 day turnaround gives your organization the agility it needs to seize contracts fast. Such green loans have extra value in aggregator-driven models where onboarding deadlines are tight.

Secondly, you also get support for EV ecosystem products. From battery swapping plans to on-road service and AMC, Ecofy’s partnerships with EV manufacturers and service providers like Hero Vida, Mahindra LMM, and Montra Electric give your EV extra security.

Most importantly, have you realized how the economics of EV usage are better for hyperlocal logistics? Think about it. In dense cities, deliveries under 8 km make up above 70% of last-mile routes This means EVs let you break even faster because of lower daily fuel costs. Even better, you could lock in better vendor rates by purchasing in bulk under a financed plan.

Why Last-Mile Growth Depends on Financing Access

It’s no secret that logistics is the spine of the $200 billion (expected by 2027) e-commerce market. We can already agree that delivery densities have increased, and sustainability norms are taking form by the week. And with this, EV fleets are slowly becoming more prominent. As a startup, you’ll be spared from waiting for months to accumulate purchase capital or rely on rental aggregators.

Why Ecofy Becomes a Top Choice in India

Among India’s first green-only digital NBFCs, Ecofy has been making EV financing accessible, inclusive, and designed for the realities of last-mile operators.

Instead of treating EVs like standard auto loans, Ecofy structures loans around small ticket sizes suited for gig workers and micro-fleet owners. Moreover, you’re privileged with flexible repayment schedules that match delivery income cycles. Simply hop onto the digital onboarding wagon for rapid approvals.

Last-mile delivery startups will appreciate the tech-based tracking and EMI reminders Ecofy has set for gig workers. Above all, partnerships with EV ecosystem players make it way simpler for fleet-scale deployment.

Read More: Learn More About Electric Vehicle Loan Interest Rates at Ecofy

FAQs

1. How much does an EV for delivery cost in India?
   Electric two-wheelers cost ₹1.2–₹1.8 lakh. Cargo e-rickshaws range from ₹2.5–₹3.5 lakh.
2. Can startups with no credit history get EV financing?
   Yes. First-time borrowers and gig workers are eligible with simplified documentation.
3. Can I finance a fleet of EVs at once?
   Yes. Fleet startups can finance multiple vehicles under a single agreement.

Contact Ecofy if you need financing for EV loans. You can call 1860-266-2059 or explore your options online.