EV financing platform Revfin raises $10M in Series A round led by Green Frontier Capital
, an EV financing platform for individual drivers, has raised a Series A round of $10 million in a combination of equity and debt. While the company did not disclose the share of the split, this round takes the total funding raised by the company to $25 million.
The funding round was led by Green Frontier Capital (GFC), a VC fund focused on climate investments. It is managed by Sandiip Bhammer and Rudra Dalmia, and LC Nueva Investment Partners—a partnership between Singapore’s Lighthouse Canton and Delhi-based Nueva Capital, alongside participation from existing investors.
With GFC’s investment, Ajay Gupta, Senior Partner Emeritus at McKinsey and Co, will also be joining the board of Revfin. He is an alumnus of IIT Delhi and Stanford University and sits on the board of several companies in the US and India.
Sameer Aggarwal, Founder and CEO of Revfin, said, “Electric three-wheelers have a market share of over 50% of sales nationally. We expect the two-wheeler market to follow a similar trend in the next two to three years, with four-wheelers following shortly after."
He further added, "With a high monthly growth rate of 15%, Revfin will continue to dominate the EV financing market. Our deep expertise in technology enables us to underwrite financially excluded customers in under 15 minutes. This fundraise will help us accelerate EV adoption across the country and help India achieve its carbon objectives.”
The founder tells YourStory that by March 2023, the company would use the funds to expand its geographical footprint from 14 to 25 states, and capture over 10% national market share of financed electric three-wheelers. Revfin has set an ambition of financing two million electric vehicles in the next five years.
The company has already financed over 10,000 electric three-wheelers in 14 states.
Additionally, the company recently started financing two-wheelers used for ecommerce and last-mile deliveries, including food deliveries.
"We also plan to get into four-wheeler financing—both rideshare taxis as well as as trucks for cargo deliveries. These are the various things that we want to do with this fundraiser over the next six to 12 months," Sameer said.
RevFin provides potential buyers with different types of EVs (e2W, e3W, L5 and small fleets through OEMs and fleets) and financing products which verify the borrowers' identities and then disburse loans to them digitally with low-level of NPAs (less than 2%). RevFin’s proprietary method uses psychometrics, biometrics, telematics, gamification, and geo-limiting to underwrite risks.
“Revfin is also supporting climate action, financial inclusion, women empowerment and financial literacy, which is highly commendable,” said Sandiip Bhammer, Managing Partner of Green Frontier Capital.
“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. They lend through their own NBFC because most of the buyers are from small towns with no banking transaction data and have a very low level of education," said Sohil Chand, Founding Partner and Chief Investment Officer of LC Nueva AIF.
RevFin is currently fully operational in 14 states with 400 dealerships. It is gradually increasing both the reach and OEM partnership, and has already disbursed over $16 million.
The company is looking at disbursing over Rs 40,000 crore of loans over the next five years, driven by high fuel prices, incentives rolled out by the central and state governments, and renewed emphasis by ecommerce companies to electrify their last-mile delivery fleets.
Edited by Kanishk Singh