New Delhi based Mufin Green Finance Limited, formerly APM Finvest Ltd., has raised INR 80,000,000 (approximately USD 1 million) from Shell Foundation, a UK registered charity, reported Economic Times.
Mufin Green Finance is an NBFC catering to Electric Vehicle Loans for income generation purpose.
The funds raised will be used to create a $2 million joint de-risking pool, known as First Loan Default Guarantee (FLDG). The infusion of funds is expected to unlock commercial capital for financing 2-wheeler and 3- wheeler EVs for low-income transporters in India on a large scale, with the help of larger financial institutions such as IREDA and SBI, paving the way for wider adoption of clean mobility solutions.
The ET report said that the funding is expected to allow Mufin to finance approximately 42,000 EVs, providing more than 210 million rides to low-income groups, and reducing around 0.37 million tons of CO2 over a five-year period.
Founded in 2016, Mufin Green Finance is India's first listed NBFC with a 100% focus on EV financing. With a capital base of 150 Cr and a disbursement history of 250Cr and EV vehicles, Mufin has financed EV assets worth more than 300Cr over the last couple of years. The EV financing company claims to hold a 7-8% market share of Erickshaw financing in our operating territory, spread across 14 states.
A subsidiary of Hindon Mercantile Limited, Mufin Green Finance is backed by Incofin India Progress Fund, a Belgium-based impact investor, as equity partners. Mufin Green's debt partners include 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.
Earlier this month, industry body CII, in a report titled "Roadmap for Future Mobility 2030", said that — Financing for electric vehicles in India remains a challenge and therefore it is necessary to offer options that can help adjust costs and electric vehicles (EVs) to bring equal to the cost of vehicles with internal combustion engines (ICE).
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