Revfin secures $14M for EV financing led by Omidyar Network

Revfin, an electric vehicle (EV) focused lender, recently secured a significant funding boost.

• Funding Details: The company raised a robust $14M (approximately Rs 115 crore) in an equity funding round. The round was led by Omidyar Network, with contributions from the Asian Development Bank, Companion Capital, and existing investors Green Frontiers Capital and LC Nueva.

• Use of Funds: The funding will primarily support expansion activities, with a focus on three-wheel EV financing and extending into battery financing and charging infrastructure financing.

• Clientele and Partnerships: Revfin, founded by Sameer Aggarwal, works with both direct customers and fleet operators, with a large portion of its clientele being first-time borrowers and drivers. Building strong relationships is critical to its model, and the company focuses on creating a comprehensive EV ecosystem with OEMs and retailers.

• Future Projections: Over the next two to three years, Revfin plans to generate half of its revenue from B2B customers. For FY23, the company aims to achieve an annualised revenue run rate of Rs 100 crore and report Rs 80 crore in revenue, with about Rs 8 crore in PAT.

• Profitability: In the current fiscal year, Revfin has achieved break-even status on a PAT basis, signaling a positive trajectory towards profitability - a factor deemed crucial in investor discussions.

Overall, Revfin's recent funding round signals a positive outlook for the company's growth and expansion plans within the EV financing sector.