Mufin Green acquires 20% stake in Li-ion battery leasing player UrjaMobility

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Mufin Green Finance, an NBFC focused on Green financing, announces the acquisition of a 20% stake in UrjaMobility. UrjaMobility is into Battery Leasing for the end users of electric three-wheelers. These are LFP batteries that claim over 2000 charging cycles and a product life cycle exceeding 4 years.

Pankaj Chopra, Founder at UrjaMobility, said, “With the existing base of almost 3 million E-Rickshaws operating in the market, there are approx 1 to 1.5 million units that are eyeing Battery Replacement every year assuming the Lead Acid Battery lasts between 15-20 months. Most of the battery replacement is happening with lead-acid batteries being cheaper versions as compared to the cost of a lithium-ion battery. To ease this financial burden, UrjaMobility provides Battery as a service (BaaS) model that offers an easy Monthly Lease Value to the end user.

“With plans to immediately deploy 10,000 batteries and impact the life of drivers by converting their hard-earned capital into easy Monthly Lease, we are delighted to partner with Mufin Green Finance strategically”, Chopra added.

The market for new E-Rickshaws is on a remarkable growth trajectory at 15% CAGR, contributing significantly to the livelihoods of individuals from socio-economic backgrounds. The current market size stands at approximately 600,000 units per year and is anticipated to surpass 1 million units annually by 2030, said a release. It added that the cornerstone of this collaboration is the integration of advanced Li-Ion batteries, providing control for fintech platforms with IoT connectivity, thermal analytics, and remote immobilization capabilities.

“Looking at the wide adoption of Lithium-Ion batteries presented a paradigm shift as it not only enhances operational ease but also converts 50% of the overall asset cost to an easily manageable monthly lease value, significantly reducing capital expenditure. Foreseeing this as a monumental shift to bolster the EV ecosystem, we are delighted to partner with UrjaMobility and envision by 2030, the commercial use of electric two-wheelers (E2W) will be 100%, totalling between 10-12 million units with a product life cycle of 3 years”, said Kapil Garg, MD at Mufin Green Finance.

Also read: Pointo enabling lead-acid to Li-ion battery transition for e-rickshaw drivers.