An extended nationwide lockdown is likely to affect debt repayment schedules of urban mobility startups such as Zoomcar, Drivezy and VOGO, who have taken loans from non-banking financial companies (NBFCs) and private banks to finance procurement of vehicles, said investors and analysts.
Though many startups in the shared mobility space are well-financed to service near-term debts, a change in customer behaviour post-lockdown may hinder revenue growth and, consequently, their ability to repay loans.
Shared mobility startups are asset-heavy businesses and borrow money to finance the purchase of vehicles, while cab-hailing platforms such as Uber and Ola are asset-light business models, wherein the driver finances the purchase of vehicles and