Mufin Green Finance, India’s pioneering listed NBFC dedicated to Electric Vehicle (EV) financing, recently achieved a significant milestone by securing INR 80,000,000 (equivalent to USD 1 million) in funding from Shell Foundation, a UK registered charity. The infusion of capital aims to establish a USD 2 million joint de-risking pool in the form of FLDG (First Loan Default Guarantee). This innovative initiative is designed to unlock commercial capital for financing electric 2-wheelers and 3-wheelers, specifically targeting low-income transporters in India. The ultimate goal is to facilitate widespread adoption of EVs by bridging the gap and fostering collaboration with prominent financial institutions such as IREDA (Indian Renewable Development Agency), SBI (State Bank of India), and others.
Shell Foundation, a charitable organization registered in the UK, is dedicated to empowering underserved communities in Sub-Saharan Africa and India. Their primary mission is to provide access to clean and renewable energy, enabling individuals to earn sustainable living incomes. Over the years, since its establishment in 2000, Shell Foundation has made significant strides in reducing CO2 emissions and generating employment opportunities. Through their impactful efforts, they have channeled funding into various energy sub-sectors, benefiting a remarkable 229 million people by increasing their incomes and opening up new opportunities for a brighter future.
Delighted with the funding support, Mr. Kapil Garg, Managing Director of Mufin Green Finance, said, “Mufin Green Finance is very well slated on its business plans since inception. We are progressively bringing new-age EV financing solutions for the upholding of low-income communities. We are extremely thrilled with the trust that Shell Foundation has put in us and we look forward to disrupting the EV space in the ongoing fiscal.”
The funding provided by Shell Foundation is aimed at catalyzing commercial debt for Mufin Green Finance, enabling them to leverage approximately US$ 40-60 million in debt over five years in two to three cycles. This strategic approach will allow Mufin to facilitate additional lending by recycling the de-risking pool. As a result, Mufin will have the capacity to finance around 42,000 Electric Vehicles (EVs) for low-income clients, providing over 210 million rides to disadvantaged groups and reducing 0.37 million tons of CO2 emissions over the five-year period.
Shell Foundation is keen on comprehending the pain points along the e-mobility value chain and exploring the potential for income uplift through innovative financing solutions for “productive use asset” ownership and leasing models. These solutions aim to empower customers to earn sustainable livelihoods.
Established in 2016, Mufin Green Finance holds the distinction of being the first pure-play listed NBFC company of its kind (listed on BSE). Its core mission is to democratize EV financing and leasing by providing income generation solutions. Since its inception, the company has been actively contributing to the growth of India’s EV ecosystem. To date, it has financed EVs valued at over INR 350 Crores, indirectly reducing 38,000 tonnes of carbon emissions through its clientele.
Currently, Mufin Green Finance boasts an impressive Assets Under Management (AUM) of Rs 300 crore. However, the company has ambitious plans to accelerate its growth significantly in the next three years. Their vision includes multiplying their portfolio by at least 20 times, achieved through the exploration of new territories and products to promote green penetration throughout India.
In pursuit of their expansion objectives, Mufin Green Finance aims to increase its market share from 7% to 10% across the northern and eastern regions of India. Their proactive approach involves reaching out to underserved populations, providing them with much-needed financial services, and creating income generation opportunities to uplift their livelihoods.
Furthermore, the company is set to establish a nationwide presence, making financial services accessible to people across all parts of India. They aspire to be the go-to solution for the underserved, ensuring financial inclusion while promoting a sustainable approach to green financing. As part of their broader strategy, Mufin Green Finance plans to venture into other green financing products, such as solar panel financing, with a targeted launch date by the end of 2024. This expansion will contribute to the company’s mission of driving positive environmental impact and fostering a greener, more sustainable future for India.