EV Financing Startup Revfin Bags $5 Mn Debt Funding From DFC

Electric vehicle (EV) financing startup RevFin on Friday said it has bagged a debt funding of $5 Mn from the US International Development Finance Corporation (DFC).

In a statement, the startup said it will use the fresh funds to strengthen its presence in the country and introduce new products by diversifying into two-wheelers for last-mile deliveries, four-wheelers for mid-mile cargo delivery, and ride-share taxis. 

Established in 2018 by Sameer Aggarwal, the Delhi-based startup provides loans for buying two-wheeler, three-wheeler and small fleets of EVs. It claims that it disburses loans digitally to borrowers in 16 minutes.

Revfin aims to finance 2 Mn EVs in five years. Currently, it claims to have financed over 21,800 three-wheeler EVs. 

Commenting on the investment, Aggarwal said, “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.”

Talking to Inc42, the CEO said Revfin focussed on financing electric two-wheelers in Tier-II, III cities and small towns so far. He said that the startup has a presence in about 17 states, and has a “fairly large” market share in four states.

“Now with these funds coming in and also all the future fundraisers, the idea is to, first of all, gain a very high market share or very high market penetration in all the 17 states we are present in and not just in the four states,” Aggarwal said.

Revfin also aims to expand its presence to 25 states by the end of 2023 and scale up financing for three-wheeler and four-wheeler EVs.

Aggarwal claimed that Revfin’s loan book grew about 3.5 times in FY23 and 4.5 times in FY22. “For new loans, the story is very similar in terms of the new disbursements that we are doing. There we are witnessing a 4X growth YoY,” Aggarwal added.

The funding comes a few months after Revfin raised $10 Mn in a mix of equity and debt financing in its Series A round from Green Frontier Capital (GFC) and LC Nueva Investment Partners, among others, in October last year.

Earlier last year, it also raised debt funding of INR 100 Cr. 

The development comes at a time when EV adoption is gradually rising in the country. EV sales are currently led by the two-wheeler segment in the country.

In April, the Small Industries Development Bank of India (SIDBI) also launched a pilot financing scheme for EV purchases.