RevFin, an EV financing startup, has successfully secured $14 million (Rs 115 crore) in its Series B funding round. The company which has already invested in over 36,000 EVs has set a target to finance two million EVs within the next five years.
RevFin’s CEO stated, “This funding will further empower us to strengthen the EV ecosystem and contribute to the growth of all forms of Electric vehicles in India.” The secured funds will be utilized to provide financing for both two- and three-wheeler EVs and support key components of the EV ecosystem like charging stations and batteries.
The funding aims to bolster the financing and leasing of electric vehicles while diversifying its focus across various facets of the EV ecosystem. Additionally, it seeks to expand its geographical footprint.
Founded in 2018, RevFin specializes in offering loans to commercial fleet drivers, employing various underwriting methods such as psychometrics, biometrics, telematics, and gamification. The startup recorded revenue of Rs 34 crore in FY23 and aims for over a 2X increase, targeting Rs 80 crore by the end of the current fiscal year.
The company claims its focus is to finance commercial electric vehicles for individual drivers, helping in mass scale adoption of electric vehicles. Drivers financed by the company use their vehicles for passenger transportation, e-commerce and cargo deliveries. All vehicles financed by the firm have telematics which help drivers track and improve their productivity while keeping their vehicles secure.
Omidyar Network India, in the process of concluding its operations in India after a decade-long presence, contributed approximately $5 million to the Series B funding round. Despite halting new investments in the Indian market, the entity remains committed to fulfilling previously committed follow-on rounds.
Contributions to the funding round include $3.75 million from Companion Capital Limited, nearly $2.5 million from the Asian Development Bank, and participation from existing investors such as Green Frontiers Capital ($1.5 million) and LC Nueva ($1 million).
Moreover, angel investors like Dhiiraj Jain (Redcliffe Labs), Anuraag Jaipuria, Ruchi Rans Jaipuria, Rishi Kajaria, Let’s Venture Angel Fund, Harash Jain, and others have collectively supported the remaining portion of the investment.
RevFin aspires to finance two million EVs within the next five years
With this Series B funding, RevFin has now raised a total of Rs 625 crore through a combination of debt and equity. CEO Aggarwal outlined the next steps, indicating plans to secure approximately Rs 500 crore in debt over the next few months, building on the foundation of this equity raise.
Earlier in the financial year, RevFin raised around Rs 280 crore in debt, including a significant portion from the US International Development Finance Corp.
Having achieved profitability last year, the company aims for Rs 8 crore in profit by the end of the ongoing year. Currently operational in 23 states, RevFin plans to extend its presence across all states in India.
The company has already invested in over 36,000 EVs and aspires to finance two million EVs within the next five years.
The recent funding round was led by Omidyar Network, supported by various other investors, reflecting a growing confidence in RevFin’s endeavors within the expanding EV financing landscape.
