December 16, 2024
Mufin Green Finance Forays into Solar Financing, Targets to Fund Projects Worth INR 500 Cr by 2026 – Asia Pacific
 #IndiaFinance

Mufin Green Finance Forays into Solar Financing, Targets to Fund Projects Worth INR 500 Cr by 2026 – Asia Pacific #IndiaFinance

CashNews.co

Mufin Green Finance, a subsidiary of Hindon Mercantile Limited, has made its strategic entry into the solar financing sector with the successful closure of its first solar financing transaction, amounting to INR 3.25 crore. This milestone marks the company’s expansion beyond electric vehicle (EV) financing into the solar space.

The funding has empowered a key client to install a rooftop solar unit at a manufacturing facility in Baroda, Gujarat, for a major USD 3 billion company.

As part of its ambitious plan, Mufin Green Finance aims to fund INR 500 crore worth of solar projects and finance 2 lakh solar installations by 2026, contributing significantly to India’s renewable energy targets.

The move into solar financing comes at a time when India’s demand for renewable energy is surging, with Mufin Green Finance stepping in to offer innovative financing solutions that will help accelerate the transition.

The company’s new solar financing solutions come with no collateral requirements, reducing loan approval times to under 10 minutes and ensuring disbursals within 24 to 48 hours. Loan amounts ranging from INR 1 lakh to INR 10 crore are available, covering the entire cost of solar systems, including panels, inverters, batteries, and installation. This financing program supports both residential and commercial solar projects.

Speaking on the expansion, Kapil Garg, MD and CEO, Mufin Green Finance, said, “This transaction marks an important step in expanding solar financing options for stakeholders through solutions like supply chain financing, working capital for installers, and lease financing for end-users. Our focus on assessing assets, stakeholders, and cash flows allows us to streamline the financing process and make solar energy more accessible across India.”

He further added, “This project is one of several in our pipeline, with similar initiatives planned in Jaipur, Nagpur, and other locations. As we grow our loan book, Mufin Green Finance aims to fund over INR 500 crore worth of solar projects in the next two years, further contributing to India’s renewable energy targets and supporting the clean energy transition.”

Pratik Mandvia, Solar Business Head at Mufin Green Finance stated, “Solar energy is no longer an alternative; it’s becoming a central pillar of India’s energy strategy. By entering the solar financing sector, Mufin Green Finance is poised to accelerate this transition, offering capital solutions that not only fund projects but also drive ecosystem-wide collaboration.”

He further informed, “Our focus extends beyond individual installations as we aim to address industry-wide challenges such as high upfront costs and cumbersome loan processes. With fast-track financing options and zero-collateral loans, we are creating a model that empowers stakeholders across residential, commercial, and industrial sectors to adopt solar technology seamlessly. This initiative positions Mufin Green Finance as a catalyst for large-scale adoption of clean energy, contributing significantly to India’s renewable energy goals.”

Mufin Green Finance, founded in 2016 by Kapil Garg, has facilitated the deployment of electric vehicles worth INR 6000 crores across two, three, and four-wheelers, with a presence in 16 states across India.

Recently, the company raised INR 140 crore in a Series B equity round, alongside INR 530 crore in debt funding last fiscal year. An additional USD 5 million in debt financing was secured from BlueOrchard. These funds will drive Mufin’s green energy initiatives, foster innovation, and support sustainable development across its financing portfolio.

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