EV Financing: Shell Foundation Backs Mufin Green Finance with INR 80 Million

Mufin Green Finance, an electric vehicle (EV) financing company, secured funding of INR 80,000,000 from the UK-registered charity, Shell Foundation. The collaboration aims to establish a joint de-risking pool valued at $2 million, known as First Loan Default Guarantee (FLDG), to catalyze commercial debt. This strategic move is expected to enable Mufin Green Finance to leverage approximately $40-60 million in debt over the next five years.

An official statement revealed that the funding will play a pivotal role in financing 42,000 EVs for low-income clients, providing an astounding 210 million rides to marginalized communities while curbing 0.37 million tons of CO2 emissions during the same five-year period.

Moreover, the company expressed its confidence that this financial backing will unlock access to commercial capital for electric two-wheelers and three-wheelers, catering specifically to low-income transporters in India. This expansion will be facilitated by partnering with prominent financial institutions like IREDA (Indian Renewable Development Agency), SBI (State Bank of India), and others.

Founded in 2016, Mufin Green Finance stands as the first pure-play listed (BSE) NBFC company of its kind. At present, it boasts an Asset Under Management (AUM) of INR 300 crore, and the company aims to expand its portfolio by at least 20 times within the next three years. The ambitious expansion strategy includes exploring new territories and innovative products to drive green penetration throughout India.

Furthermore, Mufin Green Finance has ambitious plans to expand its reach across all regions of India, offering comprehensive financial services tailored to the underserved population while creating income-generation opportunities to uplift their livelihoods. The company’s prospects include venturing into other green financing products, such as solar panel financing, by the end of 2024.

With this landmark funding, Mufin Green Finance is poised to make significant strides in the EV financing landscape, spearheading a green revolution. Teaming up with other investors, Mufin launched the Electric Mobility Financiers Association of India, a platform for institutions financing EVs and other products and services relevant to the ecosystem.

EV sales in India reached 371,340 units in the second quarter of 2023, a year-on-year increase of 66 per cent compared to same period last year.