Turno, an electric vehicle-focused fintech startup, is set to raise $5.5 million (around ₹50 crore) in a pre-Series B round, signalling renewed investor confidence in India’s commercial EV and last‑mile mobility market. The funding comes as demand for electric three‑wheelers and delivery vehicles grows across urban and semi‑urban centres.
Investor mix signals faith in EV financing opportunity
The pre‑Series B round is expected to include domestic and international investors such as Stellaris Venture Partners, British International Investment, B Capital and Quona Accion Inclusion Fund. Post‑money valuation is estimated at about ₹492 crore, reflecting investor belief in Turno’s long‑term expansion prospects.
As part of the raise, the company has approved issuance of compulsorily convertible preference shares — a structure commonly used by startups preparing for rapid scale‑up and subsequent funding rounds.
How Turno operates
Founded by Hemanth Aluru and Sudhindra Reddy, Turno operates at the intersection of electric mobility and fintech, specialising in sales and financing of commercial EVs, with a particular focus on electric three‑wheelers. These vehicles are a key component of last‑mile logistics and passenger transport in India.
Turno partners with multiple EV manufacturers to help fleet operators, small transporters and first‑time entrepreneurs choose vehicles suited to their operational needs. Beyond brokering vehicle sales, the company provides tailored financing solutions aimed at lowering the upfront cost barrier for drivers and fleet owners transitioning from internal combustion engine (ICE) vehicles to electric alternatives.
This integrated model — vehicle selection, finance and after‑sales support — addresses one of the primary impediments to EV adoption in India: affordable and accessible structured financing.
Planned use of funds and geographic expansion
The fresh capital will be deployed to scale operations, expand into new cities, strengthen lender relationships and enhance the company’s technology platform. Turno plans to invest in credit underwriting, data analytics and customer onboarding systems to improve loan approval rates and repayment monitoring.
Currently operating in EV‑friendly states such as Delhi, Telangana and Maharashtra, the startup aims to deepen penetration in high‑growth regions where demand for commercial electric vehicles is rising rapidly.
Financial profile and growth outlook
Turno, like many growth‑stage firms, is prioritising scale over near‑term profitability. In the most recent financial year it reported modest revenues alongside losses driven by expansion costs, technology investment and customer acquisition spending.
Investors appear comfortable with this trajectory given the long‑term potential of the commercial EV financing market. With supportive government policies, improving charging infrastructure and rising total cost‑of‑ownership advantages for EVs, the addressable market for Turno is expected to expand substantially.
Role in India’s evolving EV ecosystem
The fundraise underscores a broader shift of capital toward sustainable mobility, climate tech and fintech solutions that target real operational challenges. Commercial EVs can substantially reduce emissions, lower operating costs for transporters and reshape urban logistics economics.
As the ecosystem matures, platforms that combine vehicle access with financial inclusion — like Turno — are poised to become important enablers of India’s clean transport transition. Strong investor backing and a focused execution plan position Turno to play a significant role in this evolving sector.
