Shell Foundation provides $1 million in funding to Mufin Green Finance
New Delhi: Mufin Green Finance announced that it has raised INR 80,000,000 (approximately USD 1 million) from a UK-registered charity, Shell Foundation. The funding will be used to create a USD 2 million joint de-risking pool, known as First Loan Default Guarantee (FLDG), aimed at unlocking commercial capital for financing EVs for low-income transporters in India, with the help of larger financial institutions such as IREDA and SBI.
The funding is expected to enable Mufin to leverage an estimated US$ 40-60 million debt over five years for additional lending through recycling of the de-risking pool. It is projected this will allow Mufin to finance approximately 42,000 EVs, providing more than 210 million rides to low-income groups, and reducing around 0.37 million tons of CO2 over five years.
The company is delighted to have received the funds, and Kapil Garg, the managing director of Mufin Green Finance, emphasized their dedication to continue offering electric vehicle financing choices for low-income regions.
Since its inception in 2016, Mufin Green Finance has facilitated over INR 350 crore in financing for electric vehicles, leading to a reduction of 38,000 tonnes of carbon emissions for its clients.
Now managing assets of Rs 300 crore, Mufin Green Finance intends to more than 20 times its portfolio over the following three years. The corporation plans to grow operations across all of India while increasing its market share in northern and eastern India from 7% to 10%. Additionally, the business intends to enter new green financing markets by the end of 2024, including solar panel financing.
Mufin Green Finance is a company based in Mumbai, Maharashtra, India, and was founded in 2020 by Mr. Manish Jain, who is the CEO and Director of the company. The company provides financing solutions for electric vehicles, charging infrastructure, and solar energy in India.
They aim to drive an economy that is socially conscious and environmentally sustainable. They offer loans for income generation through electric vehicles, such as two, three, and four-wheelers, as well as leasing or financing of charging equipment and swappable batteries.