The series A funds raised in a combination of equity and debt is led by LC Nueva Investment Partners and Green Frontier Capital
New Delhi, October 20, 2022: Revfin, India’s largest EV financing platform for individual drivers has closed its Series A round of funding worth $ 10mn in a combination of equity and debt. The funding round was led by Green Frontier Capital (GFC), India’s first-ever VC fund focusing specifically on climate investments, which is managed by Sandiip Bhammer and Rudra Dalmia and LC Nueva Investment Partners, a partnership between Singapore’s Lighthouse Canton and New Delhi based Nueva Capital, alongside participation from existing investors. In connection with GFC’s investment, Ajay Gupta, Senior Partner Emeritus at McKinsey & Co. will also be joining the board of Revfin. Gupta is an alumnus of IIT Delhi and Stanford University and sits on the board of several companies in the US and India.
Revfin has set a bold ambition of financing 2 million electric vehicles in the next 5 years. The company has already financed over 10,000 electric three wheelers in 14 states. Revfin will use the funds from this round to expand its geographical footprint to 25 states and capture over 10% national market share of financed electric three wheelers. The funds will also be used to diversify in to two wheelers for last mile deliveries and four wheelers for mid mile cargo delivery and ride share taxis.
Sameer Aggarwal, the Founder and Chief Executive Officer, Revfin said, “Electric three wheelers have a market share of over 50% sales nationally. We expect the two-wheeler market to follow a similar trend in the next 2-3 years with four wheelers following shortly after. With a high monthly growth rate of 15%, Revfin will continue to dominate the EV financing market. Our deep expertise in technology enables us to underwrite financially excluded customers in under 15 minutes. This fundraise will help us accelerate EV adoption across the country and help India achieve its carbon objectives.”
RevFin provides potential buyers of different types of EVs (e2W, e3W, L5 and small fleets through OEMs and fleets) with financing products which verify the borrowers' identities and then disburse loans to them digitally and quickly (within 16 mins) with low-level of NPAs (less than 2%). RevFin’s proprietary method uses psychometrics, bio metrics, telematics, gamification, and geo-limiting to underwrite risks.
“We are thrilled to announce Green Frontier Capital’s lead investment in the Series A round of RevFin, which is India’s No. 1 EV financing company. We strongly believe that India’s EV revolution is being driven by 3-wheelers and scooters and, in this regard, RevFin has already demonstrated promise of significant scalability in India’s EV financing segment, which continues to remain under-served. More importantly, in doing so, Revfin is also supporting climate action, financial inclusion, women empowerment and financial literacy, which is highly commendable.” said Sandiip Bhammer, Managing Partner of Green Frontier Capital.
“There are not many financing options available in the Indian EV market even though the potential to scale this segment is vast as a significant part of the country is yet to adopt these vehicles. We are excited about Revfin’s approach to using technology to provide loans to traditionally underserved individuals in India for purchasing electric vehicles for commercial purposes. They lend through their own NBFC because most of the buyers are from small towns with no banking transaction data and have a very low level of education. As the company is set to expand its presence in the country, we are very excited to be a part of this journey.” said Sohil Chand, Founding Partner & Chief Investment Officer of LC Nueva AIF.
On the subject of his agreeing to join the Board of Directors of Revfin, Ajay Gupta commented “Sustainability will be a critical theme for all over the next decade. I’ve been impressed by Sameer and his team’s relentless focus and execution, and look forward to supporting them on GFC’s behalf to achieve their vision. It’s exciting to see the impact, reducing India’s carbon footprint while providing livelihood and financial opportunity to millions of people”.
With over 180+ Million zero-emission kilometers enabled, 22,000+ tons of CO2 emission saved, 11,000 jobs created and 3.9 million lives impacted positively (directly or indirectly), RevFin is already making its presence felt in the fight against Climate Change.
RevFin is currently fully operational in 14 States with 400 dealerships and works with seven top original equipment manufacturers (OEMs) out of ten, and gradually increasing both the reach and OEM partners. It has already disbursed over US$16 Mn. Furthermore, multiple lender partnerships are in place to grow even stronger and further. The company is looking at disbursing over INR40,000 crores of loans over the next five years driven by high fuel prices, incentives rolled out by the central and state governments and renewed emphasis by eCommerce companies to electrify their last-mile delivery fleets.
About RevFin
Revfin is an award winning and innovative digital platform, that provides loans to people at the bottom of the pyramid using revolutionary techniques like psychometrics, biometrics and gamification. A typical Revfin customer lives in Tier 2 or 3 town, has no credit history, very low level of education and no banking transactions. Revfin has a clear focus on financing commercial electric vehicles for individual drivers, helping in mass scale adoption of electric vehicles for passenger transportation, e-commerce and cargo deliveries.
About LC Nueva Investment Partners LLP and LC Nueva AIF
LC Nueva AIF, is an India domiciled Category II AIF Fund, where LC Nueva Investment Partners LLP is the Investment Manager, with Rs. 300 crores corpus to invest in early-stage tech enabled businesses. LC Nueva Investment Partners LLP is a partnership between Singapore based Lighthouse Canton and Delhi based Nueva Capital. The AIF seeks to invest in a select, high-potential companies through the span of its 8-year fund life at the pre-series A and series A stages. The Fund’s Investment Committee comprises of Sohil Chand, Founding Partner & CIO of LC Nueva AIF, Ashish Chand, Founding Partner of LC Nueva AIF, and Sumegh Bhatia, Managing Director of Lighthouse Canton India.
About Green Frontier Capital (GFC)
Green Frontier Capital (GFC) is India's first investment firm that focuses on growth companies which are delivering breakthrough innovation in green industries, leading to clear and measurable decarbonization and SDG impact. These industries include Electric Mobility, FoodTech, AgTech, Renewable Energy, BioFuels, Waste Management, Clean Water, Sustainable Lifestyles, etc. The fund is managed by Sandiip Bhammer and Rudra Dalmia.
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