Digital lending platform RevFin, a lender to people at the bottom of the pyramid said, it would raise ₹250 crore this year through debt and equity to finance electric vehicle (EVs) buyers in the three-wheeler and two-wheeler categories.
The company, which is majorly into financing three-wheeler EVs is now planning to enter small four-wheeler EVs financing, with Tata Motors and Omega Seiki launching small cargo EVs recently. And it has tied up with companies like Hero Electric for two-wheelers recently.
“We provide loans to those purchasing electric vehicles for commercial purposes. We have our own NBFC so all the lending is done on our own balance sheet because most of the buyers have no banking transaction data, have very low level of education and they live in small towns -- tier two/ three -- so that’s sort of general customer base that we cater to,” Sameer Aggarwal, Founder and Chief Executive Officer, RevFin, told BusinessLine.
RevFin recently raised ₹100 crore funding in debt led by Northern Arc, Liquiloans, and the UK charity Shell Foundation, among others. It will utilise the capital to foray into financing and leasing two-wheelers for e-commerce deliveries. The funds will be utilised for extending loans to drive growth from the current monthly disbursement run-rate of ₹3 crore to ₹15 crore per month, he said.
Started in 2018, the company has raised around $20 million (₹145 crore) till now, and within this year, the plan is to raise around ₹250 crore for financing new vehicles.
He said the company is fully operational in 14 States with 300 dealerships and works with seven top original equipment manufacturers (OEMs) out of ten, and gradually increasing both the reach and OEM partners.
“The target is, in the next 18 months, we are there across at least 25 States as I don’t think all the States will end up adopting EVs...Some will not be able to do it because of typography, geography. But I think 25 States is basically where we believe we can be...we are not really present in Western parts of the country yet,” Aggarwal added.
The company has financed 8,000 vehicles till now and aims to disburse ₹40,000 crore for 17-lakh EVs in the next five years.