Mufin Green Finance, a listed Non-Banking Financial Company (NBFC) dedicated to electric vehicle (EV) financing, has secured ₹80 million (~$972,585) in funding from Shell Foundation, a UK-registered charity.

The collaboration aims to create a joint de-risking pool worth $2 million in the form of First Loan Default Guarantee (FLDG). The infusion of funds is expected to unlock commercial capital for financing 2-wheeler and 3-wheeler EVs for low-income transporters in India on a large scale, paving the way for wider adoption of clean mobility solutions.

The funding received from Shell Foundation will help Mufin Green Finance to leverage approximately $40-60 million in commercial debt over five years through recycling of the de-risking pool.

The fund raised will enable Mufin to provide financing for around 42,000 EVs, offering over 210 million rides to low-income groups and reducing 0.37 million tons of CO2 emissions over a five-year period.

The company said that by extending support to Mufin, Shell Foundation aims to contribute to the sustainable growth of the EV ecosystem in India and drive positive environmental impact.

Shell Foundation, since its inception in 2000, has been working to empower underserved communities in Sub-Saharan Africa and India by providing access to clean and renewable energy.

The foundation’s efforts have led to reduced CO2 emissions, job creation, and increased incomes and opportunities for over 229 million individuals.

Founded in 2016, Mufin Green Finance has financed EVs worth over ₹3.5 billion (~$42.5 million), indirectly reducing 38,000 tons of carbon emissions.

Kapil Garg, Managing Director of Mufin Green Finance, emphasized the company’s commitment to bringing new-age EV financing solutions to uplift low-income communities in India. With the trust and support of the Shell Foundation, Mufin Green Finance aims to disrupt the EV space during the ongoing fiscal year.

Mufin envisions expanding its operations to cover all parts of India, offering a financial solution for the underserved population, and venturing into other green financing products, such as solar panel financing, by the end of 2024.

Last year, Mufin Green Finance and other investors launched the Electric Mobility Financiers Association of India which will act as a platform for institutions financing EVs and other products and services relevant to the ecosystem.

EV sales in India reached 371,340 units in the second quarter of 2023, a year-over-year increase of 66% compared to 223,293 units sold in the same period last year.