Our investment
Description of the investment.
Description of the investment.
This investment is part of our 'VC Scale-up' strategy to support the growth of the most impactful companies in our venture capital funds portfolio.
Turno distributes, finances and provides buy-back guarantees on electric vehicle (EV) batteries and is helping to remove barriers to commercial electric vehicle adoption in India. Turno has developed in-house proprietary technology to accurately predict the residual value of a battery and to identify second life use cases for a battery.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
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How?
| Primary | Secondary |
|---|---|
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Turno is facilitating improved financing terms, such as reduced down payment, lower rate of interest, for owners of electric 3-wheelers light commercial vehicles and commercial buses. With lower ownership costs, it encourages EV adoption and support clean energy transition in India. |
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Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Planet |
India |
Transport sector is responsible for 12-16 per cent of India’s greenhouse gas emissions. |
| Retail EV Owners |
India |
According to S&P Global Ratings, the EV penetration rate in India in 2022 was only 1.1 per cent, as compared to the Asian average of 17.3 per cent. |
How much?
| Scale | Depth/Duration |
|---|---|
|
It expected that by 2026 the company will be able to facilitate EV loans to ~16,000 light commercial vehicles, ~11,000 passenger three-wheelers and ~300 buses totalling up to a value of $180 million. It is expected that these new EVs will abate ~485,000 metric tonnes of CO2 emissions. |
Compared to the alternatives available in the market, Turno offers higher LTV, lower rate of interest and higher resale value. Impact is expected to be long lasting and likely to deepen over time as Turno attracts more competitive financing terms from financiers because of its underwriting technology. |
Contribution/additionality
| Contribution/additionality |
|---|
|
We are helping Turno achieve its fundraising target. We will also help the company to institute improved environmental and social practices in their battery repurposing business. |
Risk
Execution RiskTurno’s ability to improve financing terms is contingent on its ability to execute its technology to overcome asset and credit risk. External RiskConstant changes in battery technology may affect Turno’s ability to predict battery degradation and residual value. This risk is external and difficult to mitigate in today’s context where cell manufacturers continue to find the best technology. Stakeholder Participation RiskThe final price that Turno pays EV owners for battery buy-backs is contingent on how the owner utilizes his/her asset during its lifetime. If owners do not follow recommended best practices such as slow charging cycles, it could degrade batteries faster than anticipated, affecting the final price owners can get from Turno buy-back. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
We partnered with our fund manager to co-invest in this company, including by relying on our fund manager's ESDD. BII developed an environmental and social action plan with the investee, including developing an ESMS and mitigation measures associated with labour and working conditions, occupational health and safety and emergency management system.
Environmental and social risk
Medium-Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- June 2024
- Last updated
:
When the last quarterly update of the website database occurred.
- December 2024
- Project number
:
An identifier number shared by investments in the same project.
- D6516
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- India
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Technology and telecoms
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Automobiles
- Investment type :
- Equity
- Start date :
- March 2024
- Amount :
- $3m
- Currency of investment :
- INR
- Domicile
:
The company or investment fund’s place of incorporation.
- India
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Fully qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Mitigation
- First published
