Mufin Green secures $18M, plans to expand EV finance

To extend its electric vehicle (EV) finance and leasing activities, Mufin Green Finance, a publicly traded non-banking financial company (NBFC), has secured $18 million in debt investment from a US-based organisation.

The 10-year facility includes an initial disbursement of $10 million, with the remaining $8 million expected within a year. The company will get $10 million as the initial payment of a 10-year-long facility, followed by the remaining $8 million expected within a year.

According to the company, the funding will aid in expanding its line of electric two-, three-, and four-wheelers as well as associated infrastructure. A sizeable portion of the money will go toward expanding micro, small, and medium-sized business (MSMEs) access to finance, especially in underdeveloped areas.

Citing Kapil Garg, Founder and Managing Director of Mufin Green, Yourstory reported, “This funding is a major step forward for us. It aligns perfectly with our mission to bridge the financing gap for electric vehicles in the MSME sector.” 

He further said, “As the EV market grows, especially in tier-2 and tier-3 cities, the need for accessible financing will rise sharply. Our aim is to support drivers, fleet owners, and small entrepreneurs who need funding to shift to electric mobility,” YOURSTORY reported.

The lender, headquartered in New Delhi, has already disbursed over $175 million and oversees a $100 million portfolio spread over 26 Indian states. Data from the company shows that 84% of its retail borrowers had never applied for formal credit before. 

According to Garg, the company views EV financing as a way to promote income generation and financial inclusion, particularly for MSME drivers. 

Under the parent company Hindon Mercantile Limited, Mufin Finance, which was founded by Kapil Garg and Rajat Goyal, started financing e-rickshaws in the Delhi-NCR area in 2016 and went on to become the first listed pure-play EV finance firm in India. Its product line consists of swappable batteries, charging infrastructure, and EV financing.