EV financing NBFC Mufin Green Finance the acquisition of the listed entity LKP Finance would inject an additional Rs 340 crore equity capital into the business. Last week, Mufin Green disclosed to the stock market that its Board of Directors had approved the share purchase agreement of LKP Finance. Founded in 2016, the company is set to acquire a 45.32% stake in LKP Finance, a publicly listed entity.

In another development, Mufin Green Finance revealed that it had secured Rs 140 crore in Series B funding, adding to the Rs 530 crore raised in debt funding in the previous fiscal year. The company stated that the proceeds from this funding round would be utilized to accelerate Mufin’s growth trajectory and expand business operations in the western region of the country. Debt financing was facilitated by institutions such as the State Bank of India, IREDA, AU Small Finance Bank, ICICI Bank, and Kotak Mahindra, while equity investment received significant backing from family offices, although specific names were not disclosed.

Kapil Garg, MD of Mufin Green Finance, expressed confidence in the business model, stating, “The funding affirms the strength of our business model and positions us effectively to meet the ever-increasing demands of our expanding customer base. Also, it will equip us to explore more product avenues in the EV ecosystem, as we are looking to further invest in more electric vehicle categories from buses and LCVs to commercial four-wheelers.”

With a presence in 16 states across India, Mufin Green Finance offers financing options for EVs spanning two-, three, and four-wheelers, fast chargers, swappable batteries, and similar products tailored for both retail and fleet operators.

Notably, in June last year, SIDBI, the principal financial institution for MSMEs in India, launched mission EVOLVE (Electric Vehicle Operations and Lending for Vibrant Ecosystem) in collaboration with NITI Aayog, the World Bank, the Korean-World Bank, and the Korean Economic Development Cooperation Fund (EDCF) to provide financing for MSMEs in the EV sector. Under this initiative, SIDBI grants MSMEs access to affordable commercial financing for EV loans, including the implementation of telematics to potentially reduce financing costs and offer data for other financial services.

Also Read

ADB Raises INR 1.25 Billion in Green Masala Bonds