Listed non-banking financial company (NBFC) Mufin Green Finance Ltd, on Monday announced that it raised Rs 45 crore (around $5.7 million) in a Series A funding round from Incofin India Progress Fund (IPF).
Mufin Green Finance is planning to disburse income-generating loans worth Rs 5,000 crore in the next 5 years. The company’s cofounder and managing director Kapil Garg believes that disbursals will reduce four million tonnes of carbon emission.
Mufin Green Finance’s stock hit upper circuit after the funding announcement, jumping 5% to Rs 159.95 apiece. Based on the current stock price, the company has a market capitalisation of Rs 345.6 crore.
Founded in 2016, Mufin Green Finance is an NBFC catering to the climate-focused electric vehicle (EV) sector. To date, the Delhi-headquartered company has financed EVs worth more than Rs 125 crore across 9 states in the country. The lender claims that its loans have reduced over 100,000 tonnes of carbon footprints.
“Given Mufin Green Finance’s strategic tie-ups with EV ecosystem players, we believe that they will play an important role in boosting the Indian EV penetration,” said Aditya Bhandari, partner and co-head of Asia at Incofin India Progress Fund.
Mufin Green Finance provides vehicle loans for electric vehicles across all wheelbases. The company also invests in areas such as electric charging, swappable batteries and EV leasing. It says that it uses artificial intelligence (AI)-driven and human-powered credit processes for EV financing.
Mufin Green Finance is a product of Mufin Finance, which also operates RupeeCircle and BimaPay. In April, Mufin Finance acquired BSE-listed APM Finvest for about Rs 76 crore with the aim to double down on its financing ecosystem for the fast-growing EV market.
India's EV market is predicted to reach $206 billion by 2030, provided the nation continues to make progress toward achieving its goal of 100% electrification by that year, as per a report by Council on Energy, Environment and Water-Centre for Energy Finance (CEEW-CEF).
In the EV financing space, Mufin Green Finance pits against several NBFCs including Manappuram, Vedika Credit Capital, Cholamandalam, and Greaves Finance.
