Mufin Green Finance, a non-banking financial company (NBFC) specializing in electric vehicle (EV) financing, has raised $18 million in debt funding from a U.S.-based institution to expand its reach in India’s fast-growing EV market. The 10-year facility will begin with an initial disbursement of $10 million, with the remaining $8 million to follow within a year.
The funding will be used to accelerate EV financing and leasing operations, including support for electric two-, three-, and four-wheelers and the critical infrastructure surrounding them. A significant portion of the capital will also enhance credit access for micro, small, and medium enterprises (MSMEs)—particularly in tier-2 and tier-3 cities, where formal financing is often out of reach.
Founded in 2016, Mufin Green focuses on financing not just EVs, but also charging stations and swappable battery solutions, building a comprehensive approach to clean mobility.
India’s $206B EV Finance Gap: An Opportunity Ripe for Disruption
Mufin’s latest round comes at a pivotal time. India’s EV market is projected to grow from $2.4 billion in 2025 to nearly $20 billion by 2030, a compound annual growth rate of 53%. Yet financing remains one of the sector’s biggest roadblocks.
Today, two- and three-wheelers dominate EV sales, accounting for over 90% of total units sold in 2024. But financing options remain scarce, especially for commercial drivers and MSMEs who need small-ticket loans for vehicles like e-rickshaws, delivery scooters, and small EV fleets.
That’s exactly where Mufin steps in. The company reports that 84% of its borrowers had never accessed formal credit before, underscoring the dual role its financing plays in promoting EV adoption and driving financial inclusion.
By targeting these underserved markets, Mufin is tapping into a massive opportunity—and filling a gap traditional lenders often avoid due to uncertain resale value, battery technology variability, and limited risk models for EV loans.
Private Capital Steps Up Where Policy Still Falls Short
While India’s Union Budget 2025 included major incentives for EV manufacturing—such as ₹4,000 crore for PM E-DRIVE and customs duty exemptions for battery components—financing gaps remain largely unaddressed. Government schemes like FAME focus on demand-side subsidies, not on unlocking capital for MSMEs or specialized lenders.
Mufin’s latest raise, its second international debt facility this year, shows how foreign investors are stepping in to bridge this gap. The company previously secured another $18 million from the U.S. International Development Finance Corporation, highlighting rising global interest in India’s clean mobility finance space.
Despite strong revenue growth (62.4% CAGR over three years), Mufin’s declining net profits and ROE reflect the sector’s early-stage dynamics—where building infrastructure and expanding access come before profitability.
Still, with a clear market need, international backing, and a model built for scale, Mufin Green is positioning itself as a key financial engine powering India’s grassroots EV revolution.
