India's EV financing startup Revfin raises $5M from United States International Development Finance Corporation (DFC)

The United States International Development Finance Corporation (DFC) has invested $5 million in EV financing startup Revfin as part of its focus on promoting inclusive financing for electric vehicle (EV) adoption in India.

The EV financing startup said it aims to finance 2 million electric vehicles within the next five years. The company has already made significant investments in over 21,800 electric three-wheelers, elevating the living standards of underserved segments, including 24% of women borrowers, the startup said.

The startup plans to use the raised capital to solidify its position as a leader in India’s EV financing sector and diversify its product portfolio by entering the two-wheeler segment for last-mile deliveries, four-wheelers for mid-mile cargo delivery, and ride-share taxis.

Sameer Aggarwal, Founder & Chief Executive Officer of Revfin, expressed his excitement about the investment and the potential for growth in India’s EV industry. He stated, “The EV industry in India has tremendous potential and also provides good employment prospects. The growth of the industry is restricted due to limited financing options. Having a forward-looking institution like DFC investing in Revfin will help scale EV adoption and increase financial inclusion. This investment will help us improve access to attractive financing solutions, which can be critical in driving EV demand and achieving carbon neutrality for India.”

Jim Polan, Vice President of DFC’s Office of Development Credit, emphasized the partnership’s significance in supporting inclusive EV financing and promoting EV adoption in India. He said, “DFC’s partnership with Revfin will help support inclusive EV financing and grow EV adoption in India. This investment demonstrates DFC’s ability to mobilize capital to support Indian innovation and provide financial opportunities for underserved communities in India.”

Revfin has gained prominence by providing potential buyers of various types of EVs, including e2W, e3W, L5, and small fleets through OEMs and fleets, with innovative financing products. The company utilizes a proprietary method that incorporates psychometrics, biometrics, telematics, gamification, and geo-limiting to underwrite risks.

The digital lending platform verifies borrowers’ identities and disburses loans to them within as little as 16 minutes, with a low level of non-performing assets (NPAs) at less than 2%.

The positive impact of Revfin’s efforts is already evident, with over 456 million zero-emission kilometres enabled, 43,650 tons of CO2 emissions saved, 21,800 jobs created, and 7.6 million lives directly or indirectly impacted. By expanding its financing options and partnering with industry players such as Zappit, Best Way, MLR Auto SKS Trading (Aarzoo), Energy Electric Vehicles (Udaan), and Sun Mobility, Revfin is actively contributing to the fight against climate change and driving the adoption of sustainable transportation solutions.

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