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Mufin Green Finance v
Mufin Green Finance, an NBFC firm catering to electric vehicle loans, has raised Rs 8 crore in funding from the UK-registered Shell Foundation as it aims to create a $2 million joint de-risking pool in the form of FLDG (First Loan Default Guarantee).
According to the company, The funding is aimed at catalyzing commercial debt by enabling Mufin to leverage approx.$ 40-60 million debt over five years. The capital would also allow Mufin to finance 42,000 EVs for low-income customers, providing over 210 million rides to low-income groups and reducing 0.37 million tons of CO2 over a five-year period.
Additionally, The capital would also unlock commercial capital for 2-wheelers and 3-wheeler electric vehicles (EVs) finance for low-income transporters in India at scale from larger financial institutions such s IREDA (Indian Renewable Development Agency), State Bank of India and others.
"Mufin Green Finance is very well slated on its business plans since inception. We are progressively bringing new-age EV financing solutions for the upholding of low-income communities. We are extremely thrilled with the trust that Shell Foundation has put in us and we look forward to disrupting the EV space in the ongoing fiscal," said Kapil Garg, Managing director of Mufin Green Finance.
With a capital base of Rs 150 crore and a disbursement history of Rs 250 crore and EV vehicles, Mufin Green Finance claims to have financed EV assets worth more than Rs 300 crore over the last couple of years.
Mufin Green Finance is a subsidiary of Hindon Mercantile Limited and is backed by Incofin India Progress Fund, a Belgium-based impact investor, as an equity partner.
Its debt partners include the State Bank of India, IREDA (India's most trusted financial institution for renewable energy), and Symbiotic, a global impact fund that has started a partnership in the form of green bonds with Mufin Green.
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