Mufin Green Finance, an Indian non-bank lender, has raised US$6.5 million from Developing World Markets (DWM) through a private placement of secured non-convertible debentures (NCDs).

The funding was secured in two tranches, with a maturity of 36 months.

This investment marks DWM’s first entry into India’s clean mobility and renewable energy sectors.

The funds will be allocated to expand loans and leases for electric vehicles (EVs), battery financing, charging infrastructure, and solar energy projects in both commercial and residential markets.

Founded in 2016, Mufin is India’s first publicly listed company focused exclusively on EV financing.

The firm aims to improve access to sustainable energy and mobility solutions in underserved Tier II and III regions.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s EV financing gap creates opportunities for specialized lenders

Mufin’s focus on EV financing addresses a massive market need, with an estimated ₹45,000-55,000 crore ($5.4-6.6 billion) required to finance electric vehicle purchases in India by 2026 1.

Despite government incentives like the FAME scheme and lower GST rates, a comprehensive financing ecosystem for EVs remains underdeveloped, with traditional lenders offering limited options and often unfavorable terms 1.

This gap explains why specialized NBFCs like Mufin are emerging as critical players in India’s green transition, with the overall EV market projected to grow from $5.61 billion in 2023 to $37.68 billion by 2028 1.

By specifically targeting underserved Tier II and III markets, Mufin is addressing both a business opportunity and a key bottleneck in India’s clean mobility transition, as high upfront costs and financing challenges remain significant barriers to broader EV adoption 2.

2️⃣ NBFCs becoming pivotal in India’s renewable energy financing ecosystem

Mufin’s fundraising represents a broader trend where specialized non-banking financial companies are increasingly providing tailored financing solutions for renewable energy projects across India 3.

The expansion from EV financing into charging infrastructure and solar energy mirrors the approach of other successful green NBFCs like Namdev Finvest, Vivriti Capital, and Electronica Finance Ltd., which are creating specialized financial products to make renewable energy more accessible 3.