Mufin Green Finance, a non-banking financial company, has raised US$18 million in debt funding from a United States-based institution.

This funding aims to expand its electric vehicle (EV) financing and leasing operations.

The 10-year facility begins with an initial disbursement of US$10 million. The remaining $8 million will be provided within a year.

The funds will be allocated to enhance financing for electric two-, three-, and four-wheelers, as well as related infrastructure.

A significant portion of the funding will improve credit access for micro, small, and medium enterprises (MSMEs), especially in underserved regions.

Founded in 2016, Mufin Green specializes in financing EVs, charging infrastructure, and swappable batteries.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s EV financing gap represents a massive $206 billion opportunity by 2030

The debt funding secured by Mufin Green Finance reflects a broader financing trend in India’s rapidly growing EV sector, which is projected to expand from $2.4 billion in 2025 to approximately $19.9 billion by 2030, representing a 53% compound annual growth rate 1.

This growth is heavily skewed toward affordable mobility solutions, with current EV sales comprising 53% two-wheelers and 42% three-wheelers, while four-wheelers account for just 5% of the market 1.

For context, while approximately 19.5 lakh (1.95 million) EVs were sold in India in 2024, electric passenger vehicles represented only about 90,000 units, highlighting the dominance of commercial and lower-cost segments 2.

Mufin’s business model targeting MSMEs in tier-2 and tier-3 cities directly addresses this market reality, where commercial vehicles like e-rickshaws represent the largest adoption opportunity but face significant financing barriers.

The company’s claim that 84% of its retail borrowers had never previously accessed formal credit highlights how specialized EV lenders are expanding financial inclusion while simultaneously driving clean mobility adoption.

2️⃣ EV financing faces unique challenges requiring specialized lenders

Traditional lenders struggle with EV financing due to uncertain residual values, lack of standardized battery assessment protocols, and limited resale mechanisms, creating a gap that specialized NBFCs like Mufin are addressing 2.