The funding is aimed at catalyzing commercial debt by enabling Mufin to leverage approx. US$ 40-60 million debt over five years
Delhi, July 2023: Mufin Green Finance – India’s first listed NBFC dedicated to EV financing has recently secured INR 80,000,000 (USD 1Mn equivalent) funding from Shell Foundation- (a UK registered charity) to create USD 2Mn joint de-risking pool in the form of FLDG (First Loan Default Guarantee). This will unlock commercial capital for 2-wheelers and 3-wheelers electric vehicles (EVs) finance for low-income transporters in India at scale from larger financial institutions like IREDA(Indian Renewable Development Agency), SBI(State Bank of India) and others.
Shell Foundation is a UK-registered charity that empowers underserved people in Sub-Saharan Africa and India to earn a living income through access to clean renewable energy. Since 2000, Shell Foundation’s work has reduced Co2 emissions, created jobs and leveraged funding into several energy sub-sectors, increasing incomes and opportunities for 229 million individuals.
Delighted with the funding support, Mr. Kapil Garg, Managing Director of Mufin Green Finance, said, “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.”
The funding is aimed at catalyzing commercial debt by enabling Mufin to leverage approx. US$ 40-60 million debt over five years in two to three cycles for additional lending through recycling of de-risking pool. This would allow Mufin to fund ~42,000 EVs for low-income clients, providing over 210 million rides to low-income groups and reducing 0.37 million tons of CO2 over a five-year period.
Shell Foundation wants to understand the pain points across the e-mobility value chain, as well as prospects for income uplift through innovative financing solutions for ‘productive use asset’ ownership and leasing models which customers use to earn livelihoods.
Founded in 2016, Mufin Green Finance is recognized as the first of its kind pure–play listed (BSE) NBFC company. It endeavours to democratize the EV financing and leasing space with income generation solutions. Starting with a mission to fuel the EV ecosystem of India, the company has financed EVs worth INR 350+ Cr. and reduced 38,000 tonne carbon emissions indirectly through its clientele to date.
Presently, Mufin Green Finance stands at an AUM of Rs 300 crore, however, it plans to multiply its portfolio by at least 20X in the next three years, tapping new territories and products to drive green penetration in India. In addition, the company also brings its plans to action in accelerating its expansion plans, projecting to grow its market share from 7% to 10% across various territories in the northern and eastern Indian regions.
Moreover, Mufin Green Finance intends to expand to all parts of India by bringing a go-to solution for the underserved population to avail financial services while unlocking income generation opportunities to uphold their livelihood. It also plans to venture into other green financing products, such as solar panel financing, by the end of 2024.
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