How this green-financing startup is furthering India's net zero ambition

While sustainability has been a buzzword and a focus area for the government and the civil society recently, a major challenge in this industry is the lack of accessible, tailored financing solutions that can effectively support the high upfront costs and specific needs of clean technologies. 

Traditional underwriting models fall short, often missing the mark when it comes to integrating contextual data crucial for inclusive and accurate risk assessment.

To address these challenges, Mumbai-based TapFin was launched by Aditya Singh, Pramod Marar and Terniza Berry in 2023.

Recognizing the increasing demand for sustainability solutions, especially in India, the trio envisioned TapFin as a tech-enabled platform connecting service suppliers with participants in the sustainability ecosystem. 

The Mumbai-based startup leverages technology to provide comprehensive financial services, including financing, insurance, demand aggregation, market linkages, and Original Equipment Manufacturer (OEM) selection, to startups and micro, small, and medium enterprises (MSMEs) within the sustainability ecosystem.

Smart sustainability solutions

TapFin operates as a tech-led, full-stack platform, providing various products and services to ecosystem participants. This ranges from financing to insurance, demand aggregation, technology & data solutions, market access and others. This enables the ecosystem participant to satisfy its multiple needs on the TapFin platform.

The startup’s ecosystem platform brings together diverse participants within each sustainability vertical,  including service providers like OEMs, cab aggregators, fleet operators, charging point operators (CPOs), financing partners, and others who require sustainability services or solutions.

TapFin connects these participants, allowing them to collaborate and access relevant services to meet their diverse needs. For example, once a fleet operator introduces TapFin to a CPO, the startup then arranges financing for that CPO while connecting them to another customer that needs private charging infrastructure.

TapFin aims to take the verticalisation approach by focusing on specific segments within sustainability, one at a time, to build expertise and depth in each. The company’s initial focus has been on clean mobility, where it offers a comprehensive range of services tailored to the specific needs of participants in this segment. 

TapFin partners with leading banks and non-banking financial companies (NBFCs) to offer tailored financing solutions.

In addition to financing, it also offers several value-added services like insurance coverage for clean mobility assets.

The road ahead

The India Electric Vehicle Market size is estimated at $ 34.8 billion in 2024, and is expected to reach $ 120 billion by 2030, growing at a CAGR of 22.92% during the forecast period (2024-2030).

TapFin has recently raised $4 million in seed round from Elevar Equity, a prominent impact investor with a strong presence in India and Latin America. With this funding, the startup plans to enhance its technological capabilities, and expand its reach in the sustainability market.

The founders would however not comment on the revenue of the company at the moment.

Speaking about challenges, Singh says, “A key challenge that we face is the reluctance of established financial institutions to lend in the EV ecosystem.Another key challenge in building in a nascent ecosystem with evolving technology is the lack of product knowledge or understanding by new customers.” 

“TapFin has helped non-EV operators to start deploying EV and a lot of evangelization and education is required to help them assess specific use-case based vehicles, charging infrastructure etc.”

According to Singh,  TapFin has no direct competitors currently, however there are players operating in one or two of the multiple domains that the startup focuses on, such as NBFCs like Mufin and Ecofy.

“TapFin’s comprehensive ecosystem approach and commitment to integrating sustainability across multiple verticals set us apart. We don’t just provide financing; we offer a holistic solution that fosters long-term relationships and drives the transition to a more sustainable economy,” adds Singh.

Going forward TapFin plans to expand its platform across various sustainability verticals, including solar and other renewable energy technologies, alongside clean mobility. 

“Our focus will remain on empowering MSMEs, startups, and key ecosystem players with innovative financial solutions, market linkages, and value-added services. As India's demand for sustainable solutions grows, we’re committed to being a key enabler of the country’s Net Zero ambitions, driving economic growth and environmental impact together,” highlights Singh.