Mufin Green Finance aims to raise $100 million in equity and debt during this fiscal year. Dedicated towards green financing, the company claims a Non-Performing Asset (NPA) rate of 1.92%.
Pankaj Gupta, CEO, Mufin Green Finance, said, “Everything we raise this fiscal will be dedicated towards financing electric vehicles.”
The company has so far raised $7 million in green bonds from Symbiotics Investments, INR 50 crore from SBI Bank, INR 45 crore from Incofin India, and INR 150 crore from IREDA. Having enabled the disbursement of over INR 1,600 crore in loans so far (with partners), the company counts City Union Bank, BharaPe, ZYPP, Zyngo, RBL Bank, Policybazar as its business partners and has been an EV finance player since 2016.
It disbursed loans worth INR 250 crore (standalone) last fiscal. Gupta added that in 2016, which was the company's first year in operations, it had disbursed INR42 crorein EV financing.
Mapping Areas, Individuals
While many financial organisations, including banks, do deep dive into an individual's profile to assess whether he/she is eligible for loans, Mufin Green also analyses the geography where it intends to enable EV financing.
Gupta explains, “We make sure that we only finance EVs in areas where there are enough work opportunities for deploying the same. Our team maps such areas before we accept requests for EV financing, and only then the profile of the individual is assessed.”
The company says 70% of its consumer portfolio comprises people with a weak or no credit history. “Assessing the business opportunities available for the deployment of EVs ensures that the loans will be paid back, and the same has helped us keep our NPA as low as 1.92%.”
While all the EVs financed by Mufin Green Finance are deployed in the B2B channel, its consumer composition stands at 30% B2B (fleet operators) and 70% B2C (single owners). Moreover, the company has also started financing anything and everything that falls under the ambit of EVs. For instance - it has financed EV chargers, battery swap stations, and EV batteries.
Targetting E3Ws
Mufin Green has so far financed electric rickshaws, two-wheelers, electric cars, and electric three-wheelers, and though it would continue to operate in all these domains, Gupta said that the company's major focus would be on the E3Ws.
“This segment is revolutionising the EV industry in India, and this is where we want to be present the most,” Gupta said. Notably, the sales of electric three-wheelers have already surpassed the sales of their ICE counterparts in the country.
He added, “Moreover the ecosystem for electric three-wheelers is one of the most efficient ones. You have OEMs offering super warranties on battery packs, and then you have the battery swap ecosystem further aiding the growth. For three-wheeler owners, more time on the road means more profits, and we have an ecosystem that can easily help that.”
Following a phygital approach (Digital+Physical) for reaching out to potential consumers, the company offers electric rickshaw loans at 9.9% and electric three-wheeler loans at interest rates between 14% to 16%.
Present in 14 Indian States, it also runs a programme that guarantees a buyback scheme for EVs financed under its umbrella, which Gupta says also helps it maintain a lower NPA rate than the rest of the industry.
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