Mufin Green Finance – India’s first listed NBFC dedicated to EV financing has recently secured US$ 1 million funding from Shell Foundation, a UK registered charity.
The aim is to create a US$ 2 million joint de-risking pool in the form of FLDG (First Loan Default Guarantee), which will unlock commercial capital for 2-wheelers and 3-wheelers electric vehicles (EVs) finance for low-income transporters in India at scale from larger financial institutions like IREDA(Indian Renewable Development Agency), SBI and others.
The funding is aimed at catalysing commercial debt by enabling Mufin to leverage approxinmately US$ 40-60 million debt over five years in two to three cycles for additional lending through recycling of de- risking pool. This would allow Mufin to fund around 42,000 EVs for low-income clients, providing over 210 million rides to low-income groups and reducing 0.37 million tons of CO2 over a five-year period.
Shell Foundation is a UK-registered charity that empowers underserved people in Sub-Saharan Africa and India to earn a living income through access to clean renewable energy.
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.”
Mufin Green Finance intends to expand to all parts of India by bringing a go-to solution for the underserved population to avail financial services while unlocking income generation opportunities to uphold their livelihood. It also plans to venture into other green financing products, such as solar panel financing, by the end of 2024.