Mufin Green Finance, the non-banking financial company (NBFC) that finances electric vehicle (EV), has secured an $18 million in debt funding from the United States International Development Finance Corporation (DFC), according to Yourstory.
The duration of the loan is 10-years with an immediate disbursement of $10 million and the remaining $8 million expected over the next 12 months.
Expanding EV Financing Reach
The funds will be used to scale Mufin's financing and leasing solutions for electric two-, three-, and four-wheelers, alongside supporting EV-related infrastructure. The company will be focusing on extending credit to micro, small and medium enterprises (MSMEs), particularly in underserved and rural regions across India, reported Entrepreneur.
"This funding is a major step forward for us," Kapil Garg, Founder and Managing Director of Mufin Green told Entrepreneur. "It aligns perfectly with our mission to bridge the financing gap for electric vehicles in the MSME sector. With this capital, we can reach more underserved communities, provide better support, and strengthen the overall EV ecosystem," Garg added.
Mufin Green Finance is a subsidiary of Hindon Mercantile Limited which was founded by Kapil Garg in 2016. The company provides a comprehensive range of green financing solutions including loans for electric vehicles, charging infrastructure and swappable battery systems.
With operations in 14 states and over 150 cities, Mufin claims to have disbursed over Rs 350 crores (approximately $42 million) in loans to support EV adoption and income generation. To date, it has disbursed over $ 175 million and manages a $100 million portfolio spanning 26 Indian states.
Mufin has helped 84% of its retail borrowers access formal credit for the first time. By focusing on MSMEs and promoting financial inclusion, Mufin is supporting cleaner transportation while strengthening local economies.
According to a EY report, achieving net-zero emissions by 2070 for India requires urgent action across policies, technologies and reforms. India’s transport sector, contributing 18% to greenhouse gas emissions, faces challenges, with road transport—mainly trucks—being the largest emitter. Electric vehicles (EVs) offer a solution, potentially cutting CO2 emissions by 18% and saving $14 billion in oil imports by 2030.
