With fresh capital of $18 million, Mufin Green Finance is targeting an AUM of Rs 1,300 crore by the end of FY26, with around 60 percent exposure to the EV mobility segment, according to Gunjan Jain, CFO of the company.
This marks a reduction from the current 75 percent exposure, as the firm diversifies into solar and healthcare-focused medical and premium financing products to build a healthier portfolio mix across customer segments and associated risk profiles.
“We’re consciously reducing over-reliance on electric mobility,” CBO Dhiraj Agrawal said. “Our ideal mix by FY26 is 60 percent EV and 40 percent from solar and medical finance.”
The company’s solar book loan, currently small, occupying Rs 25 crore of the Rs 836-crore portfolio, is expected to grow to Rs 300–400 crore over the next two years, Agrawal said.
Mufin is building out a dedicated in-house team for solar underwriting and expects support from multiple development finance institutions (DFIs) to scale quickly, he added.
With its credit rating recently upgraded to A- in July 2024, Mufin is now eligible to tap PSU bank funding.
“Our goal is to lower our borrowing cost from 13 percent to around 11 percent over the next six months by bringing in more PSU lenders,” Gunjan said.
The management has also been tasked with reducing operating expenses to sustain profitability as spreads tighten, she said.
“We can’t keep increasing spreads. The focus now has to be on controlling op-ex to maintain margin health,” she added.
Mufin Green Finance, on May 26, raised $18 million in debt funding from the U.S. International Development Finance Corporation (USDFC).
Of this, $10 million has been disbursed as the first tranche of a 10-year loan at a cost of 6 percent which rises to 9.25 percent post-hedging.
The fund will be deployed primarily in the EV mobility space, specifically targeting SME and MSME segments across both retail and wholesale categories, according to Gunjan.
While the loan isn’t restricted to Tier II and III cities, Gunjan acknowledged that Mufin’s EV portfolio already has a strong presence in those regions.
“That’s where the market naturally is for us,” she said, noting the growing demand for clean mobility solutions in underserved areas.
The company aims to disburse the entire amount over the next 60 days, with the capital likely to be split between three- and four-wheelers, as well as electric buses.
Discussions are also underway with B2B partners, though allocation specifics are yet to be finalised, she added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
