Mufin Green Secures $18M US DFC Loan: Driving EV and Solar Financing in India!
Mufin Green, a leading electric vehicle (EV) financier, has taken a significant step forward in its mission to drive sustainable mobility by securing an $18 million loan from the United States International Development Finance Corporation (DFC). This 10-year loan will enable the company to strengthen its foothold in the EV sector and expand its financial solutions across the ecosystem.
Here’s a closer look at how this funding will impact Mufin Green’s growth and its role in shaping India’s EV and renewable energy landscape.
Contents
- 1 A Boost for EV Financing and Beyond
- 2 Mufin Green’s Journey: From E-Rickshaws to a Diverse EV Portfolio
- 3 FY24: A Year of Milestones for Mufin Green
- 4 Driving EV Adoption in Rural and Semi-Urban India
- 5 Expanding into Solar Financing
- 6 Why This Matters: The Bigger Picture
- 7 A Bright Future for Mufin Green
A Boost for EV Financing and Beyond
The $18 million loan from the US DFC is a testament to Mufin Green’s growing influence in the EV financing space. According to Kapil Garg, Founder and CEO of Mufin Green:
“The funding will help us strengthen our position in the electric vehicle sector and expand our range of financial solutions for everyone involved in the EV ecosystem, from vehicle manufacturers and dealerships to service providers and individual customers.”
But Mufin Green isn’t stopping at EVs. The company is now venturing into solar financing, aiming to support the entire solar value chain, including OEMs, distributors, installers, and end users. Garg added:
“We are now expanding our portfolio to include solar financing, similar to how we’ve helped drive the adoption of electric vehicles.”
Mufin Green’s Journey: From E-Rickshaws to a Diverse EV Portfolio
Founded in 2016 by Kapil Garg and Rajat Goyal, Mufin Green operates under the parent company Hindon Mercantile Limited. The company began its journey by financing e-rickshaws in the Delhi-NCR region and has since grown into a major player in the EV financing sector.
Key Achievements
- Cumulative Disbursements: Over ₹1,500 crore in loans.
- Active Loan Portfolio: Currently stands at ₹800 crore.
- Diverse Clientele: Includes individuals, OEMs, dealerships, and corporate borrowers.
- Comprehensive Financing: Covers two-, three-, and four-wheel EVs, as well as charging infrastructure and battery solutions.
Mufin Green’s ability to cater to a wide range of stakeholders has positioned it as a key enabler in India’s transition to electric mobility.
FY24: A Year of Milestones for Mufin Green
The $18 million loan from the US DFC is the latest in a series of funding milestones for Mufin Green. In FY24, the company raised:
- ₹140 crore through a Series B equity round.
- ₹530 crore in debt financing.
- $5 million from BlueOrchard, a leading impact investment manager.
These funds have allowed Mufin Green to scale its operations, expand its product offerings, and solidify its position as a leader in EV financing.
Driving EV Adoption in Rural and Semi-Urban India
Mufin Green has played a pivotal role in promoting EV adoption in rural and semi-urban areas, where access to financing is often limited. By offering tailored financial solutions, the company has empowered small businesses, individual drivers, and fleet operators to make the switch to electric vehicles.
Focus Areas
- Two-Wheelers: Affordable financing for electric scooters and bikes.
- Three-Wheelers: Loans for e-rickshaws, loaders, and garbage carts.
- Charging Infrastructure: Supporting the development of EV charging networks.
- Battery Solutions: Financing for advanced battery technologies.
Mufin Green’s efforts have not only accelerated EV adoption but also contributed to job creation and economic growth in underserved regions.
Expanding into Solar Financing
With its foray into solar financing, Mufin Green is diversifying its portfolio to include renewable energy solutions. The company plans to support the entire solar value chain, from manufacturers and distributors to installers and end users.
This move aligns with Mufin Green’s vision of creating a sustainable future by integrating clean energy solutions into its financing ecosystem.
Why This Matters: The Bigger Picture
Mufin Green’s success reflects the growing importance of financial institutions in driving the adoption of electric and renewable energy solutions. As India pushes toward its net-zero emissions goal by 2070, companies like Mufin Green are playing a crucial role in enabling this transition.
Key Impacts
- Accelerating EV Adoption: By providing accessible financing, Mufin Green is making EVs more affordable for individuals and businesses.
- Promoting Renewable Energy: The company’s entry into solar financing will support India’s renewable energy targets.
- Economic Growth: Mufin Green’s initiatives are creating opportunities for small businesses and entrepreneurs in the green mobility sector.
A Bright Future for Mufin Green
With the $18 million loan from the US DFC, Mufin Green is poised to scale new heights in the EV and renewable energy sectors. The company’s commitment to innovation, sustainability, and inclusivity has made it a key player in India’s green mobility revolution.
As Mufin Green expands its portfolio to include solar financing, it is not just supporting the adoption of electric vehicles but also paving the way for a cleaner, greener future.
