EV financing platform, Revfin has closed $10 million worth Series A round of funding led by VC focussing on Climate Investments, Green Frontier Capital (GFC). The company plans to use the funds from this round to expand its reach to 25 states and capture over 10 percent share of the financed electric three-wheeler market.
The funds will also be used to diversify its business in other segments like two-wheelers for last mile deliveries and four-wheelers for mid mile cargo delivery and ride share taxis.
Sameer Aggarwal, founder and Chief Executive Officer, Revfin said, “Electric three wheelers have a market share of over 50% sales nationally. We expect the two-wheeler market to follow a similar trend in the next 2-3 years with four wheelers following shortly after. With a high monthly growth rate of 15%, Revfin will continue to dominate the EV financing market.”
The lead investor, Green Frontier is a partnership between Singapore’s Lighthouse Canton and New Delhi based Nueva Capitalmanaged by Sandiip Bhammer, Rudra Dalmia and LC Nueva Investment Partners.
Explaining the investment rationale, Sandiip Bhammer, Managing Partner of Green Frontier Capital said, “We strongly believe that India’s EV revolution is being driven by three-wheelers and scooters and, in this regard, RevFin has already demonstrated promise of significant scalability in India’s EV financing segment, which continues to remain under-served.”
“We are excited about Revfin’s approach to using technology to provide loans to traditionally underserved individuals in India for purchasing electric vehicles for commercial purposes. As the company is set to expand its presence in the country, we are very excited to be a part of this journey,” added Sohil Chand, Founding Partner & Chief Investment Officer of LC Nueva AIF.
In tandem with the investment by Green Frontier, Ajay Gupta, Senior Partner Emeritus at McKinsey will also be joining the Revfin board. On the subject of his agreeing to join the Board of Directors of Revfin, Ajay Gupta commented “Sustainability will be a critical theme for all over the next decade. It’s exciting to see the impact, reducing India’s carbon footprint while providing livelihood and financial opportunity to millions of people”.
Revfin targets financing 2 million electric vehicles in the next 5 years. The company has already financed over 10,000 electric three-wheelers in 14 states. It is currently fully operational in 14 States with 400 dealerships and works with seven top original equipment manufacturers (OEMs).It has already disbursed over $16 million and looking at disbursing over Rs 40,000 crores of loans over the next five years..