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Mufin Green Finance Secures $18M Debt Funding to Scale EV Financing for MSMEs

• ByStartupStory     |    May 26, 2025

Mufin Green Finance, a publicly-listed non-banking financial company (NBFC) specializing in electric vehicle (EV) financing, has secured $18 million in long-term debt funding from a US-based financial institution. The 10-year facility includes an initial disbursement of $10 million, with the remaining $8 million expected to be released within the next 12 months.

The infusion of capital marks a significant milestone in Mufin Green’s mission to expand EV adoption in India, particularly across underserved markets. The funds will be used to bolster the company’s leasing and financing portfolio for electric two-, three-, and four-wheelers, as well as EV-related infrastructure. A large portion of the capital will be directed towards improving credit access for micro, small, and medium enterprises (MSMEs), with a focus on enabling electric mobility for small business owners, fleet operators, and drivers in tier-2 and tier-3 cities.

“This funding is a major step forward for us. It aligns perfectly with our mission to bridge the financing gap for electric vehicles in the MSME sector,” said Kapil Garg, Founder and Managing Director of Mufin Green. “As the EV market grows, especially in tier-2 and tier-3 cities, the need for accessible financing will rise sharply. Our aim is to support drivers, fleet owners, and small entrepreneurs who need funding to shift to electric mobility.”

The current funding round follows a similar 10-year, $18 million debt investment received earlier this year from the United States International Development Finance Corporation (DFC), reaffirming Mufin Green’s position as a trusted and impactful lender in the EV space.

Since its inception, Mufin Green has disbursed over $175 million in loans and currently manages a portfolio worth $100 million spread across 26 states in India. Notably, 84% of its retail borrowers are first-time recipients of formal credit, underscoring the company’s commitment to financial inclusion.

The EV-focused NBFC has its roots in the Delhi-NCR region, where it began operations in 2016 by financing e-rickshaws. Founded by Kapil Garg and Rajat Goyal under the parent company Hindon Mercantile Limited, Mufin Green has grown to become India’s first listed pure-play EV financing company. Its product suite includes financing for EVs, charging stations, and swappable battery solutions.

Dexter Capital served as the exclusive financial advisor for this latest transaction.

Mufin Green’s strategic focus on MSMEs and small entrepreneurs is aligned with India’s broader goals of clean mobility, income generation, and inclusive growth. The company continues to push the boundaries of innovation and accessibility in EV financing, driving the nation closer to a sustainable transportation future.

About Mufin Green Finance:

Mufin Green Finance, a subsidiary of Hindon Mercantile Limited, is India’s first listed NBFC exclusively focused on electric vehicle financing. With a strong commitment to sustainability and financial inclusion, the company offers tailored financing solutions for electric two-, three-, and four-wheelers, as well as EV infrastructure across the country.

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