Electric vehicle financing company Mufin Green Finance, which announced a deal to acquire LKP Finance Ltd earlier this month, Monday said the acquisition of the listed non-banking financial company (NBFC) will bring an additional Rs 340 crore ($40 million) of equity capital into the business.
The New Delhi-based lender will acquire a 45.32% stake in LKP Finance.
The acquisition serves a dual purpose of fortifying the equity capital base to fuel accelerated growth while aligning with sustainable goals to positively impact society, it said.
"This strategic venture not only amplifies our green portfolio but also empowers us to offer a diverse range of financing solutions to individual consumers, fleet operators, and commercial entities,” said Kapil Garg, managing director of Mufin Green Finance.
Founded in 2016, Mufin raised Rs 140 crore ($17 million) in a Series B round in February. This equity investment followed a previous debt funding round of Rs 530 crore from financial institutions such as IREDA, SBI, AU Small Finance Bank, ICICI Bank, and Kotak Mahindra Investments.
As India's first listed NBFC with a dedicated focus on EV financing, Mufin operates in 16 states. The company's focus extends beyond vehicles to include fast chargers and swappable batteries, catering to both retail and fleet operators.
Mufin has disbursed over INR 750 crores in loans to date, a 12-fold growth in two years, it said. As of December 2023, Mufin Green Finance's assets under management (AUM) were at Rs 502 crores and it anticipates closing the fiscal year 2024 with a figure of Rs 650-700 crore.
Founded in 1984, LKP Finance Ltd. offers securities brokerage, investment banking, wealth management, mutual funds and insurance to institutional investors, mutual funds managers, insurance companies, corporations, banks and retail clients.