Green finance is not just about sustainability, it’s about inclusivity and innovation. Mufin Green Finance is building a future where every gig worker, driver, and small business owner can own or access an EV through affordable, transparent financing. Mufin aims at making electric mobility financially accessible for all, responsibly and profitably, says Dhiraj Agrawal, Chief Business Officer at Mufin Green Finance in an interview with EVolution Auto India.
Q: The massive growth in EV sales is primarily in the 2- and 3-wheeler segments. From a lender’s perspective, what are the key risks associated with financing these specific commercial segments (like driver-owners and gig workers), and how is the industry collectively tackling issues like lack of formal credit history?
Dhiraj Agrawal: The 2W and 3W commercial EV segments have tremendous potential but come with unique risks. Many of these borrowers, driver-owners, delivery partners, and gig workers lack formal credit history or income documentation. This makes traditional underwriting inadequate. The asset itself carries operational risk due to evolving battery technologies and resale uncertainties. To counter this, lenders are now adopting alternative credit models using platform data such as trip history, wallet transactions, and utilisation trends. At Mufin, we work closely with ORMs, fleet operators, and energy partners to create a transparent ecosystem. Using telemetry data, we track vehicle performance, driver behaviour, and repayment capacity, ensuring financial inclusion without compromising risk control.
Q: Uncertainty around battery life and the absence of a mature secondary market for used EVs are major deterrents for financiers. What innovative underwriting solutions (eg. partnerships, structured loan products) is the EV financing ecosystem exploring to stabilise the long-term resale value?
Dhiraj Agrawal: True, battery performance and residual value are still grey areas. To bridge this gap, the industry is exploring battery analytics partnerships that integrate IoT-based health tracking directly into management systems. We’re also piloting structured financing products that separate battery and vehicle ownership, so depreciation risks can be managed independently. Add to that OEM buyback guarantees and repo-refinance models, and you start to see a sustainable financial structure emerging.
Q: The Union Minister recently mentioned EV prices could match petrol vehicles soon. Beyond the pricing, what regulatory support or policy intervention (like priority sector lending status for commercial EVs or FAME-III) is critically needed now to unlock large-scale, low-cost capital for EV financing?
Dhiraj Agrawal: Price parity is a milestone, but the next leap must come from financial policy support. Key interventions that can change the game include:
- Priority Sector Lending (PSL) status for commercial EVs to lower borrowing costs.
- FAME-III incentives that focus more on cargo, public transport, and small commercial segments.
- Battery standardization to bring consistency in residual value assessment.
- Government-backed credit guarantees or first-loss cover schemes, which can help financiers scale responsibly.
Q: Mufin Green Finance is exclusively focused on green mobility. How does this specialisation give the company a competitive edge over large, diversified banks, particularly in risk assessment and customer outreach for green assets?
Dhiraj Agrawal: Our biggest advantage is focus. Unlike diversified NBFCs, we operate purely in the green and EV domain, which allows us to go deep, technically and operationally. We have built EV-specific risk models, have long-standing OEM relationships, and have designed products tailored to the realities of EV ownership, like daily EMIs, battery-linked financing, and driver-first repayment structures. This ecosystem understanding helps us price risk accurately and grow sustainably where others hesitate.
Q: The company has been successful in raising capital through NCDs and institutional investments. How is Mufin ensuring this capital is deployed to maximise its social and environmental impact while maintaining a healthy asset quality and profitable growth?
Dhiraj Agrawal: Every rupee we raise is deployed towards green, climate-positive assets. We track not just financial returns but also impact metrics, like carbon dioxide saved per vehicle and number of first-time EV users financed. Our portfolio diversification across states, OEMs, and customer categories ensures both asset quality and resilience. Robust collection systems and governance frameworks make sure we deliver growth with responsibility.
Q: How is Mufin Green Finance leveraging fintech solutions and digital data to create a seamless, fast-track loan disbursement experience for customers, especially in Tier 2 and Tier 3 cities, where the need for EV financing is high?
Dhiraj Agrawal: Digital enablement is central to our model. From e-KYC and instant loan approvals to geo-tagged asset verification and AI-based credit scoring, every step is paperless and efficient. For repayments we use UPI, NACH, and wallet integrations, ensuring convenience for customers with limited financial access.
Q: Given the rapidly changing landscape, what is Mufin Green Finance’s long-term vision for integrating with the wider EV ecosystem, specifically, how will you evolve your product to address new business models like Battery-as-a-Service (BaaS) or leasing?
Dhiraj Agrawal: We see ourselves evolving from being just a financier to becoming the financial backbone of India’s EV ecosystem. Our roadmap includes:
- Financing models for Battery-as-a-Service (BaaS), charging infrastructure, and EV leasing.
- Building a battery lifecycle financing stack, from first use to reuse and recycling.
- Collaborations with battery manufacturers and energy operators to create performance-linked credit products.
In short, we’re building systems, not just scale, because in asset-heavy businesses, operational precision is the true moat.
Q: What is the most important message you would like to convey to the manufacturers, fleet operators, and end-consumers about the future affordability and accessibility of green finance in India?
Dhiraj Agrawal: Green finance is not just about sustainability, it’s about inclusivity and innovation. We’re building a future where every gig worker, driver, and small business owner can own or access an EV through affordable, transparent financing. At Mufin, our mission is simple – make electric mobility financially accessible for all, responsibly and profitably.