Mufin Finance on Wednesday said it has acquired APM Finvest, a BSE-listed NBFC, for over Rs 76 crore in a bid to create India's first financing ecosystem for the fast-growing electric vehicles(EVs) market.

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This comes after Mufin Finance acquired Rupee Circle, a P2P (peer-to-peer) non-banking financial company, in June 2021. "As part of the deal, the core team of APM Finvest will join Mufin Finance. The deal is worth more than Rs 76 crore," it said in a release.

Citing a study by CEEW-Centre for Energy Finance (CEEW-CEF), it said the EV market in India is estimated to reach $206 billion by 2030 if the country maintains steady progress to meet its ambitious target of 100 percent electrification by 2030.

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Mufin Finance is targeting Rs 100 crore disbursements in the next 3 months and aims to disburse Rs 500 crore in the next 12-15 months to capture nearly 30 percent of the present addressable market in the country, it added.

According to a report by the India Energy Storage Alliance (IESA), the Indian EV market will grow at a CAGR of 36 percent by 2026.

In addition, the EV battery market is projected to grow at a compound annual growth rate (CAGR) of 30 percent during the same period.

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"We envision to promote faster adoption and manufacturing of electric vehicles in India by creating the nation's first holistic EV financing ecosystem that will include financing options not just for electric vehicles but also for creating charging infrastructure and battery financing," said Kapil Garg, co-founder, Mufin Finance.

The sale of electric vehicles, ranging from scooters, e-rickshaws, SUVs and electric buses by both automobile giants as well as startups in India, is expected to touch a million units in 2022, almost five times the level in 2021.

"There is no doubt that growth in the EV industry is on an upward tick, but it has much ground to cover in order to meet India's ambitious target of maximum electrification by 2030, and we believe that a dedicated financing ecosystem for the Indian populace will be a strong push for the same," Garg added.

(Edited by : Jomy Jos Pullokaran)

First Published:Apr 13, 2022 6:41 PM IST