Shell Foundation funds $1M to Mufin Green Finance for EV financing

Mufin Green Finance, India’s first listed NBFC dedicated to electric vehicle (EV) financing, has recently received funding of INR 80,000,000 (USD 1 million equivalent) from Shell Foundation, a UK-registered charity. The funding is aimed at creating a joint de-risking pool worth USD 2 million in the form of First Loan Default Guarantee (FLDG). This pool will enable Mufin to attract commercial capital amounting to approximately US$ 40-60 million over five years.

The objective is to use this capital to provide financing for electric 2-wheelers and 3-wheelers to low-income transporters in India, with the support of larger financial institutions like IREDA (Indian Renewable Development Agency), SBI (State Bank of India).

Shell Foundation, a UK charity, empowers underserved communities in Sub-Saharan Africa and India through clean renewable energy. Since 2000, they’ve reduced CO2 emissions, created jobs, and increased incomes for 229 million people.

Delighted with the funding support, Mr 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.”

Shell Foundation aims to support Mufin in catalyzing commercial debt of approximately US$40-60 million over five years in two to three cycles. This funding will enable Mufin to provide loans for ~42,000 electric vehicles (EVs) to low-income clients, resulting in over 210 million rides for underserved groups and reducing 0.37 million tons of CO2 emissions in a five-year period. Shell Foundation’s objective is to understand pain points in the e-mobility value chain and explore innovative financing solutions, like ‘productive use asset’ ownership and leasing models, to uplift incomes for customers who use EVs to earn a living.

Mufin Green Finance, founded in 2016, is a unique NBFC company listed on BSE. It aims to democratize EV financing and leasing, providing income-generation solutions. Their mission is to fuel India’s EV ecosystem, and so far, they have financed EVs worth over INR 350 Cr. and indirectly reduced 38,000 tonnes of carbon emissions through their clients. With an AUM of Rs 300 crore, the company aims to expand its portfolio by at least 20X in the next three years and increase its market share from 7% to 10% across various territories in northern and eastern India.

Looking ahead, Mufin Green Finance plans to expand its services to all parts of India, offering financial solutions to the underserved population and unlocking income generation opportunities to support their livelihoods. Additionally, the company intends to venture into other green financing products, such as solar panel financing, by the end of 2024.

Also Read: EV financing is a hardcore collection business – Pankaj Gupta, Mufin Green Finance.