Mufin Green Finance Raises $1 Million From Shell Foundation The funding is aimed at catalyzing commercial debt by enabling Mufin to leverage approx.$ 40-60 million debt over five years
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Mufin Green Finance, an EV financing company, has secured INR 80,000,000 funding from Shell Foundation- (a UK registered charity) to create a $2 million joint de-risking pool in the form of FLDG (First Loan Default Guarantee). The funding is aimed at catalyzing commercial debt by enabling Mufin to leverage approx.$ 40-60 million debt over five years.
According to an official statement, this funding would also allow Mufin to fund 42,000 EVs for low-income clients, providing over 210 million rides to low-income groups and reducing 0.37 million tons of CO2 over a five-year period.
Additionally the firm said that this will unlock commercial capital for 2-wheelers and 3-wheelers electric vehicles (EVs) finance for low-income transporters in India at scale from larger financial institutions like IREDA(Indian Renewable Development Agency), SBI(State Bank of India) and others.
"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," said Kapil Garg, managing director, Mufin Green Finance.
Founded in 2016, Mufin Green Finance is recognized as the first of its kind pure–play listed (BSE) NBFC company. The company further claimed that, currently, it stands at an AUM of INR 300 crore, and it plans to multiply its portfolio by at least 20 times in the next three years, tapping new territories and products to drive green penetration in India.
Moreover, Mufin Green Finance intends to expand to all parts of India by bringing a go-to solution for the underserved population to avail financial services while unlocking income generation opportunities to uphold their livelihood. It also plans to venture into other green financing products, such as solar panel financing, by the end of 2024, added the statement.
Shell Foundation is a UK-registered charity that empowers underserved people in Sub-Saharan Africa and India to earn a living income through access to clean renewable energy.