changeadminIndia is witnessing a rapid adoption of electric vehicles (EVs) and sustainable solutions, driven by rising customer demand, technological innovation, expanding infrastructure, and supportive government policies.
However, financial barriers remain a significant hindrance. The high upfront costs and limited financing options make affordability a challenge for a large section of EV buyers.
Mufin Green Finance, a publicly listed non-banking financial company (NBFC), bridges the gap between affordability and sustainability by providing financing solutions.
Founded by Kapil Garg and Rajat Goyal in 2016, Mufin Green Finance began financing e-rickshaws, one of the largest segments in electric vehicles in India.
As the majority of electric three-wheelers are purchased by first-time borrowers from low-income backgrounds with no prior credit history, the traditional institutions are reluctant to finance such individuals.
In comparison, Mufin adopts innovative methods, such as utilising utility bills, digital payments, and telematics for borrowers’ credit evaluation, and lowers the loan risk by separating the cost of the EV from the battery.
By focusing on this segment, Mufin Green not only gained a market share but also promoted financial inclusion among underserved and unbanked segments, thus creating jobs and boosting local economies.
Though electric three-wheelers still remain the largest segment for the Delhi-based NBFC, it has now expanded its portfolio to become a pure-play EV financing company providing financial support for two-wheelers, four-wheelers, etc.
Mufin Green Finance provides EV financing solutions for infrastructure-based products, as well, including loans for charging equipment and swappable batteries.
The company has also ventured into the rapidly growing last-mile delivery segment by offering financial loans for EV fleets and related infrastructure.
The company is operating in more than a dozen states in India, and according to reports, it currently manages a $100 million loan book, with more than 80% of borrowers being new to formal credit.
Recently, the Delhi-based company has secured $18 million in debt funding from the United States International Development Finance Corporation to expand its electric vehicle financing and leasing operations.
The 10-year loan facility includes an initial disbursement of $10 million, with the remaining $8 million expected within a year. The company said the capital will help scale its offerings.
Mufin Green Finance is a unit of Hindon Merchantile and is backed by Incofin India Progress Fund, a Belgium-based impact investor, as equity partners.
The debt partners include the State Bank of India and IREDA, a government-owned financial institution for the renewable energy sector.
Wrapping Up
E-rickshaws have become a vital part of the urban and semi-urban mobility landscape in many Indian cities.
These electric three-wheelers not only offer an affordable ride for commuters but also provide a livelihood option for many individuals from less privileged backgrounds.
Additionally, e-rickshaws produce zero tailpipe emissions, reducing air pollution and dependence on fossil fuels.
Mufin Green Finance continues to strengthen its position as a key enabler in this EV ecosystem, empowering communities with sustainable mobility solutions.
Having said that, as the majority of Mufin Green borrowers include first-time borrowers with thin credit profiles, this can lead to a higher probability of default and weaker recovery in case of repossession.
Furthermore, currently, EV adoption is heavily influenced by government subsidies and incentives. If there is a sudden policy withdrawal or delays, it can impact affordability and demand, thereby affecting loan books.
Given that Mufin Green is now expanding its product portfolio to all EV segments and charging infrastructure, it should be able to diversify its risk and support cleaner transportation in India.
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