Listed non-banking financial company (NBFC) Mufin Green Finance Ltd, announced on Wednesday that it has raised $7 million (Rs 58 crore) in debt funding by way of green bonds from impact investment firm, Symbiotics Investments.
The company plans to utilise the funding received towards strengthening its retail electric vehicle (EV) portfolio for two and three-wheelers across the country along with expanding its customer base.
The bond forms part of the $75 million green basket bond program structured in partnership with British International Investment (BII), the United Kingdom development finance institution.
“With the acquired funds, we strive to remove the roadblocks for e-rickshaw drivers, sellers and dealers to shift to electric vehicles that are more sustainable and efficient as compared to conventional engines.” said Kapil Garg, founder, Mufin Green Finance.
Founded in 2016 by Garg, Mufin Green Finance is an NBFC catering to the EV sector. The company provides vehicle loans for electric vehicles across all wheelbases. The company also invests in areas such as electric charging, swappable batteries and EV leasing.
To date, the Delhi-headquartered company claims to have financed EV assets worth more than Rs 300 crore. Last year, the company raised Rs 45 crore in a Series A funding round from Incofin India Progress Fund (IPF).
Mufin Green Finance’s stock on Wednesday saw a marginal increase of 1.2% to Rs 266.15 apiece. Based on the current stock price, the company has a market capitalisation of Rs 669.79 crore.
“This green bond confirms Symbiotics Investments’ strategy to make sustainability, social and green bonds accessible for smaller issuances in emerging and frontier markets.” added Prashant Bhardwaj, regional manager, Symbiotics Investments-South Asia.
Geneva-based Symbiotics is an investment firm that specialises in emerging, sustainable and inclusive finance. It has offices in Zurich, London, Cape Town, Mexico and Singapore. Founded in 2005, the firm claims to have made over 7,100 investments worth $7.5 billion.
In the EV financing space, Mufin Green Finance competes against NBFCs including Manappuram, Vedika Credit Capital, Cholamandalam, and Greaves Finance. Last year, electric mobility-focused digital lender RevFin secured $10 million in a Series A funding round co-led by Green Frontier Capital (GFC) and LC Nueva Investment Partners.
