Secondary market starts shaping up for EVs | Interaction with Ujjwal Seth – Mechanify 

Gurugram-based startup Mechanify has developed a resale platform focused on refurbishing and reselling commercial electric vehicles (EVs), particularly targeting light EVs (2Ws & 3Ws) for gig workers in the delivery sector. In an interaction with EVreporter, co-founder Ujjwal Seth shared details about the company’s business model, operations, and future plans. Here are the edited excerpts from the conversation.

Evolution of the Business

Founded by Ujjwal Seth and Viren Thakur, Mechanify started in 2020 as a doorstep two-wheeler servicing venture, catering to both internal combustion engine (ICE) vehicles and EVs. The company expanded operations in Gurugram, set up service garages, and served clients such as Zypp Electric and Sun Mobility. Over time, the company raised equity-based funding.

However, in 2024, after facing the possibility of shutting down operations, the team shifted focus to vehicle refurbishment. 

This pivot was prompted by an instance where repossessed vehicles from a non-banking financial company (NBFC) were brought to the Mechanify hub for refurbishment. The incident led to the conceptualisation of a new business direction—reselling refurbished commercial EVs.

Current Business Model

The current model involves acquiring repossessed or retired commercial EVs from NBFCs and fleet operators, refurbishing them, and reselling them to end-users. The platform primarily targets gig workers and delivery riders on platforms such as Swiggy, Zomato, Zepto, Rapido and others. The refurbished vehicles are equipped with new batteries and are offered at prices approximately 40–45% lower than those of new EVs, shared Ujjawal.

Mechanify has developed a digital platform that allows NBFCs and fleet operators to list vehicles. Buyers—typically drivers or small operators—can access these vehicles at lower upfront costs. The company says it aims to provide performance and range levels comparable to new vehicles by replacing key components during refurbishment.

Financing and Stakeholder Partnerships

Access to financing for refurbished EVs has been identified as a key challenge. NBFCs that have faced losses on specific vehicles are generally reluctant to refinance them. To address this, Mechanify has partnered with select NBFCs to provide credit lines for buyers. To date, the company has secured a financing commitment of ₹25 crore, of which ₹5 crore has already been deployed.

The platform engages with multiple stakeholders:

• NBFCs: To source repossessed vehicles through existing lender relationships.

• Fleet operators: List retired vehicles that are no longer in service due to lack of parts or operational challenges.

• Drivers and delivery workers: End-users who acquire refurbished vehicles at a lower cost.

Market Relevance of their Business Model

According to the company, many repossessed EVs are currently parked with NBFCs or fleet operators due to defaults and performance-related dissatisfaction, such as declining range over time. Mechanify positions its offering as a response to this market inefficiency by creating resale value from existing assets.

The company also draws parallels with platforms like Spinny and Cars24 in the private vehicle segment, while maintaining a singular focus on commercial electric vehicles—similar to financing operations undertaken by Sriram Finance. 

The company has developed internal tools to estimate the value of used vehicles based on factors such as distance travelled, physical condition, and usage history. According to Ujjwal, this pricing system functions similarly to that of platforms that handle pre-owned electronics, such as Cashify.

Operations and Expansion Outlook

As of July 2025, the company operates primarily in the Delhi NCR region through a hub-based model, where refurbishment is carried out centrally and vehicles are made available to drivers across the region. 

Mechanify generates a monthly revenue of approximately ₹60 lakh, with a growth rate of around 20% month-on-month. The company reports having vehicle pre-orders worth nearly INR 10 crores.

In addition to two-wheelers, Mechanify plans to expand into refurbished sales of electric three-wheelers and LCVs. The company has raised an equity investment (amount undisclosed). Key investors include Zypp Electric, SAAR Group, IIMA (Ahmedabad) Ventures, and India Accelerator. 

Also read: Battery leasing models are becoming the backbone for the used e-2W & 3W market