IREDA, Mufin Green Partner To Drive EV Penetration in India

Mufin Green Finance, a non-banking financial company (NBFC) committed to 100 per cent electric vehicle (EV) and climate financing has partnered with Indian Renewable Energy Development Agency (IREDA) to thrive EV penetration in India.  

With this partnership, Mufin Green Finance plans to strengthen its retail EV portfolio for two and three-wheeler, mainly focussed on e-rickshaw and e-auto vehicles, across India over a period of time. 

Mufin Green Finance intends to improve the lives of 5000 consumers to start with, and eventually reach more than 1,00,000 consumers by extending this partnership. A major highlight of this initiative is said to be the reduction of borrowing costs for end consumers by 40 per cent, as e-rickshaw consumers belong to a weaker society that will further empower the lives of unserved and underserved segments of Indian society.

“We are glad to have built trust in IREDA’s investors and will be deploying debt funds in the right area of retail financing. Despite uncertainties looming in the market, we look forward to seeing a strong track record in disbursing income-generating EV loans worth Rs 5000 crore in the next five years,” said Kapil Garg, founder, Mufin Finance

IREDA is a Mini Ratna (Category – I) Government of India Enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.

Founded in 2016, Mufin Green Finance is a Bombay Stock Exchange (BSE) listed NBFC company that is among the few organised financiers in the EV space. It was started with a mission to fuel the EV ecosystem of India and in a short span, the company has reportedly financed EVs worth over Rs 245 crore. To promote green environment, the company has reduced 1.93 million tons of carbon emissions indirectly through its clientele in over five years.

Currently, Mufin Green Finance operates at a market share of more than 7 per cent across various territories in the northern and eastern Indian regions. Standing at a net worth of $20 million, the company plans to multiply its portfolio by at least 20X in the next three years, tapping new territories and products to drive green penetration in India.

The company intends to expand to all parts of India by December 2023 and also plans to venture into other green financing products, such as solar panel financing, by 2023.