Fintech platform ProsParity on Thursday said that it raised $2 million in a pre-seed funding round from global institutional investors such as BEENEXT, Sparrow Capital, All In Capital, DeVC, and Huddle Ventures.

Other investors such as Dr Ashish Gupta (Co-founder of Junglee & Helion Ventures), Raj Dugar (Ex-Eight Roads Ventures), Dhyanesh Shah (Co-founder of Mosaic Wellness), Abhishek Goyal (Co-founder of Tracxn) and Nitin Kaushal (Co-founder of Country Delight) also participated in this round.

"ProsParity's technology platform and omni channel presence coupled with our experienced team and lender network will help evolve and grow the nascent EV financing landscape in India," Saurabh Khodke, CEO and Co-founder of ProsParity, said in a statement.

According to the company, the funds raised will be used for building proof of concept, technology, and expanding origination networks, starting with Central India.

"The founding team’s mission focusses, in the long-term, on creating a level playing field between EVs and ICE vehicles by democratising access to finance for not just customers, but also the dealers," said Anirudh Garg, Partner at BEENEXT.

ProsParity is also building a comprehensive partnership network across Original Equipment Manufacturers (OEMs), Fleet Operators, Dealerships, and Lenders.

To democratise financing for EVs in the mass market, the company said that it aims to achieve an Asset Under Management (AUM) of Rs 100 crore within the next two years by serving the market at large and new-to-credit customers.

As per NITI Aayog, the size of the annual loan market for EVs in the country is projected to hit Rs 3.7 lakh crore in 2030.