EV Financing Startup RevFin Raises $10 Mn From GFC, LC Nueva

Delhi NCR-based EV financing startup RevFin has raised $10 Mn in a mix of equity and debt financing Series A round from Green Frontier Capital (GFC) and LC Nueva Investment Partners, among others. The startup has not disclosed equity and debt percentage details.

With the funds raised, the startup plans to focus on geographical expansion, setting foot in 25 states within the country and financing at least 10% of the EV purchases in the next five years. It also plans to take the number of EVs financing from 10K to 2 Mn by 2027.

Besides, it plans to diversify into two-wheelers EV financing for last-mile deliveries and four-wheelers EV financing for mid-mile cargo delivery and ride-share taxis.

RevFin founder and CEO Sameer Aggarwal stated that electric three-wheelers have a market share of more than 50% of sales nationally and the startup expects two-wheelers and four-wheelers to follow suit. 

The fundraise is intended to accelerate RevFin’s EV quick financing model in the burgeoning EV ecosystem.

Founded in 2018 by Aggarwal, RevFin enables commercial EV financing (three-wheelers) loans in Tier-III and IV towns. The startup has a proprietary underwriting method that uses psychometrics, biometrics, telematics, gamification, and geo-limiting to underwrite risks, and disburses loans in as less as 15 minutes.

RevFin has an NBFC licence to issue loans in partnership with 400+ EV dealerships and seven OEMs (original equipment manufacturers) in 18 states. It only recently ventured into two and four-wheeler EV financing, after having disbursed $16 Mn (INR 130 Cr+) worth of loans since its launch.

Revfin plans to take the number to INR 40,000 Cr (over $4.5 Bn) in the next five years – a scale only achievable with category expansion.

Earlier this year, the startup bagged INR 100 Cr in debt from Northern Arc, LiquiLoans, UK Charity Shell Foundation, and other investors. 

Prior to that, RevFin raised $4 Mn in a mix of equity and debt financing from Redcliffe Life Solutions’s Dheeraj Jain, Let’s Venture Angel Fund, Anuraag and Ruchirans Jaipuria, Rishi Kajaria and Rahul Seth, Knam Marketing’s Amit Goel and CarDekho’s Ranjit Yadav.

State governments across the country have announced incentives, accelerator programs, subsidies, indirect tax benefits, infrastructure support and more to EV startups, buyers, manufacturers, investors and all other stakeholders.

Thus, as India’s EV ecosystem, a market worth $1.4 Bn, comes of age, startups such as RevFin, OTO Capital and Three Wheels United are at the fore of leading the resolution by enabling financing.