RevFin, which runs a digital lending platform that finances electric vehicles for commercial use, has raised $4 million (about Rs 30 crore) in pre-series A funding round with both equity and debt.
The funding round was led by Redcliffe Life Solutions founder Dheeraj Jain. Other investors in the round included Let’s Venture Angel Fund; Anuraag and Ruchirans Jaipuria; Rishi Kajaria and Rahul Seth; Amit Goel, founder of Knam Marketing; and Ranjit Yadav, president, Car Dekho.
RevFin said the resources raised will be utilised to fast-track the adoption of electric vehicle (EV) solutions among low-income consumers in the country. The company’s founder, Sameer Aggarwal, said even as electric mobility is seeing rapid adoption in India, the lack of financing options remains the largest roadblock.
“Revfin’s EV financing platform overcomes challenges of consumer underwriting and product risks to make financing convenient and accessible. The latest infusion of funds will provide us more fuel to overcome multiple barriers in the EV financing space in a structured manner and establish Revfin as a market-leading EV financier in India,” said Aggarwal.
Revfin intends to expand its operations by increasing loans from the current monthly disbursement run-rate of Rs 3 crore to Rs 15 crore.
Dheeraj Jain of Redcliffe Life Solutions said, “Significant tailwinds exist for the EV sector as costs are declining and nearly all e-commerce platforms are transitioning to electric mobility… RevFin is set to scale 15x in the next 12 months and we are very excited to participate in this journey.”
With the government aggressively encouraging the use of e-mobility to cut down on crude oil imports and reduce vehicular pollution, major e-commerce companies have started looking at electrifying their delivery fleet and are placing orders for new products. Amid rising fuel prices and central and state government incentives, demand for electric vehicles for commercial use is expected to surge 15 times in the next few months.
RevFin is targeting capturing 20% market share in electric three-wheeler financing in UP and Bihar this year. By 2030, the market size for electric vehicles used for commercial purposes is projected to grow to Rs 3.7 lakh crore, Electric three-wheelers are expected to account for 65-75% of new three-wheeler sales by the end of the decade.
RevFin is working with Shell Foundation, a UK-registered charity which supports innovative business solutions and enterprise models that can contribute towards sustainable development goals, to accelerate the adoption of electric mobility solutions among low-income consumers from tier-2 and tier-3 towns.
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