Digital consumer lending platform Revfin raised $5 million from the US International Development Finance Corporation (DFC), the company said in a statement.
The firm, a player in the Indian electric vehicle (EV) financing space, intends to introduce new products by diversifying into two-wheelers for last-mile deliveries, four-wheelers for mid-mile cargo delivery, and ride-share taxis with the fresh funding.
The Delhi-based company aims to finance 2 million electric vehicles in the next five years. “The growth of the industry is restricted due to the limited financing options. Having a forward-looking institution like DFC investing in Revfin will help scale EV adoption and increase financial inclusion. This investment will help us improve access to attractive financing solutions, which can be critical in driving EV demand and achieving carbon neutrality for India,” said Sameer Aggarwal, founder and chief executive officer (CEO) at Revfin.
The company offers financial products to buyers of electric two-wheelers (e2Ws), electric three-wheelers (e3Ws), the L5 category and small fleets through original equipment manufacturers (OEMs). It claims to digitally disburse loans within 16 minutes of verifying borrowers’ identity and has less than 2 per cent of non-performing assets (NPAs).
“This investment demonstrates DFC’s ability to mobilise capital to support Indian innovation and provide financial opportunities for underserved communities in India,” said Jim Polan, Vice President of DFC’s Office of Development Credit.
To date, the company has invested in over 21,000 electric three-wheelers.
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Established in 2018, the fintech platform claims to utilise its non-banking financial company (NBFC) to disburse loans using non-traditional data and techniques such as biometrics, psychometrics and gamification.
Additionally, Revfin Mobility, which includes four-wheelers, two-wheelers, and three-wheeler cargo through fleet aggregator partnerships, has also entered the electric vehicle leasing business, creating a micro secondary market for EVs.