Mufin Finance, operated by Hindon Mercantile Ltd, on Wednesday said it has acquired BSE-listed APM Finvest for Rs 76 crore.
The transactions aim to create India’s first financing ecosystem for the fast-growing electric vehicle (EV) market, it said.
The deal comes on the back after Mufin Finance acquired Rupee Circle, a P2P (peer-to-peer) non-banking financial company, in June 2021.
Founded in May 2016 APM Finvest is a part of Rajgharia Group of Industries.
The company operates a lending business by providing business loans to SMEs and corporates.
India's EV market is estimated to reach $206 billion by 2030 if the country maintains steady progress to meet its ambitious target of 100 per cent electrification by that year, the company said citing a study by CEEW-Centre for Energy Finance (CEEW-CEF).
Mufin Finance has set a target of disbursing Rs 100 crore in the next three months, intending to disburse Rs 500 crore in the next 12-15 months to capture roughly 30% of the country's current addressable market.
"We envision to promote faster adoption and manufacturing of electric vehicles in India by creating the nation's first holistic EV financing ecosystem that will include financing options not just for electric vehicles but also for creating charging infrastructure and battery financing," said Kapil Garg, Co-Founder, Mufin Finance.
He added, "There is no doubt that growth in the EV industry is on an upward tick, but it has much ground to cover to meet India's ambitious target of maximum electrification by 2030, and we believe that a dedicated financing ecosystem for the Indian populace will be a strong push for the same."
Electric vehicle sales in India, which include scooters, e-rickshaws, SUVs, and electric buses, are predicted to reach a million units in 2022, about five times what they were in 2021, the statement said.
Mufin Finance, a subsidiary of Hindon Mercantile Limited (HML), was established in 2016 and has since given loans totalling over Rs 1,500 crore.
Mufin Finance offers Indian customers the convenience of processing, documenting, and disbursing loans through a quick and digital process.
