Digital Lending Startup RevFin Bags INR 100 Cr For Business Expansion

SUMMARY

RevFin will deploy funds to increase geographic footprint for financing three-wheelers

It is entering new states such as Madhya Pradesh, Assam, Rajasthan and Punjab for EV three-wheeler financing

It aims for a five-fold revenue growth in the next fiscal year, up from its current revenue of INR 12 Cr per annum

Electric vehicle-focused fintech lending startup RevFin has raised INR 100 Cr in a debt financing round led by Northern Arc, LiquiLoans, UK Charity Shell Foundation, and other investors.

With this capital infusion, RevFin will expand the e-rickshaw financing businesses in new states such as Assam, MP, Rajasthan, and Punjab. Further, it aims to increase its existing 20% market share in UP, Bihar, Uttarakhand and Jharkhand.

The startup hopes the capital infusion will fast-track the adoption of EV solutions among the unbanked and underserved in India. RevFin will further utilise the capital to foray into financing and leasing two-wheelers for ecommerce deliveries.

“The latest inflow of funds will help us overcome multiple barriers in the EV financing space in a structured manner and establish Revfin as a market-leading EV financier in India. Having experienced over 5X growth in monthly disbursement, we have built partnerships with all major e-rickshaw OEMs and are also planning to bring forward our next equity raise,” said Sameer Aggarwal, founder and CEO of RevFin.

Founded in 2018 by Aggarwal, RevFin is a digital consumer lending platform that offers loans to consumers. It has a presence in 18 states in India with more than 350 dealership locations. It also has its own NBFC to issue the loan amount using non-traditional data.

It is presently associated with multiple original equipment manufacturers (OEMs). Further, it claims to have disbursed loans of about INR 50 Cr to date with a repayment record at 95%.

It is targeting to capture 20% of the markets in Assam, Punjab, MP, and Rajasthan.

Earlier in October 2021, RevFin grabbed $4 Mn (nearly INR 30 Cr) in Pre-Series A funding round led by Dheeraj Jain (Redcliffe Life Solutions). The startup raised money in both equity and debt. The round also saw participation from Lets Venture Angel Fund, Anuraag and Ruchirans Jaipuria, Rishi Kajaria and Rahul Seth, Amit Goel (Knam Marketing), and Ranjit Yadav (CarDekho). Then, it deployed money to accelerate the adoption of EV solutions among low-income consumers in India.

In November 2021, supply chain financing startup Vayana Network raised INR 283 Cr in a Series C round. The round saw participation from existing and new investors, including Chiratae Ventures, CDC Group, Jungle Ventures, March Capital, Marshall Wace and some of the large family offices from India and abroad.

In October 2021, digital lending startup Kinara Capital raised INR 70 Cr in funding from Invest in Visions GmbH (IIV). The startup mainly provides unsecured collateral-free loans between INR 1 Lakh and INR 30 Lakhs to MSMEs using a digital-first approach. It claims to have disbursed more than INR 2,400 Cr through 65,000 loans.

Besides the above-cited digital lending startups, Indifi, U Gro, Capital Float, InCred, FlexiLoans, and Lendingkart are some big players in the digital lending space.