New Delhi, Feb. 17 -- Lightspeed-backed Exponent Energy, a maker of batteries and equipment that allow rapid charging of electric three-wheelers, is setting up a subsidiary that will offer an innovative pay-as-you-go financing model to help expand its business across the country, according to top company executives.

The finance subsidiary, Exponent One, will allow operators of autorickshaws to repay loans based on vehicle usage and their daily earnings instead of fixed equated monthly instalments. Exponent One will finance both the retrofitting of CNG or LPG three-wheelers into EVs and purchases of new electric three-wheelers.

"Fundamentally, we think with EVs, energy is the capital expenditure problem. Customers are paying that capex u...