Electric vehicles (EVs) are slowly gaining mainstream momentum in India. Besides vehicle manufacturers and battery makers, EV financing platforms like RevFin are also attracting investor interest now. The Delhi-based platform for individual EV drivers has closed a $10 million Series A round in a mix of debt and equity capital.
The round was led by climate-tech focused fund Green Frontier Capital (GFC), which is managed by Sandiip Bhammer and Rudra Dalmia and LC Nueva Investment Partners (a partnership between Lighthouse Canton and Nueva Capital). It also saw participation from existing investors. Prior to this, in March, RevFin had raised $13 million in a debt round led by Northern Arc, LiquiLoans, and others.
It plans to use the funds to expand its fleet to 25 Indian states, with the ambition of capturing over 10 per cent of the financed electric three wheelers market. A part of the capital will also be deployed towards expansion into two-wheelers for last-mile deliveries and four-wheelers for mid-mile cargo delivery and ride-share taxis. RevFin’s tech platform underwrites EV loans for drivers of these vehicles, who typically lack access to formal credit, in under 15 minutes. It uses psychometrics, biometrics, telematics, gamification, and geo-limiting to underwrite credit risks.
Sameer Aggarwal, Founder and CEO, RevFin said, “Electric three wheelers have a market share of over 50 per cent 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 per cent, RevFin will continue to dominate the EV financing market. This fundraise will help us accelerate EV adoption across the country and help India achieve its carbon objectives.”
At present, the start-up has a presence in 14 states and has financed more than 10,000 EVs, including e2W, e3W, L5, and small fleets through 400 dealerships and 7 OEM partnerships. RevFin wants to scale this up to two million vehicles in the next five years, and disburse over Rs 40,000 crore of loans. It lends through its own NBFC because most borrowers are from small towns, with no money trail or banking transaction data.
Commenting on the investment, Sandiip Bhammer, Managing Partner of Green Frontier Capital, said, “We strongly believe that India’s EV revolution is being driven by 3-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. RevFin is also supporting climate action, financial inclusion, women empowerment and financial literacy, which is highly commendable.”
Since its inception in 2018, RevFin claims to have enabled more than 180 million zero-emission kilometres, and saved 22,000+ tonnes of CO2 emissions. “There are not many financing options available in the Indian EV market even though the potential to scale this segment is vast. 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,” Sohil Chand, Founding Partner & Chief Investment Officer of LC Nueva AIF, said in a statement.
Also Read: Hero Electric, RevFin tie-up to provide loans to EV riders
Also Read: EV financing start-up Revfin raises Rs 100 crore in debt
