Electric vehicle-focused lender Revfin has raised $14 million (about Rs 115 crore) in an equity funding round led by Omidyar Network, according to ETtech report.
Sameer Aggarwal, founder and chief executive of the Delhi-based company, said almost all of the funding came in primary capital. He did not disclose the valuation at which the funds were raised.
The fund raise also saw participation from Asian Development Bank, Companion Capital, and existing investors Green Frontiers Capital and LC Nueva.
This comes even as Omidyar, the fund backed by eBay founder Pierre Omidyar, is exiting India after more than a decade in the country.
This year, Revfin has raised Rs 280 crore in debt, which it primarily uses for giving out loans and scaling its business, according to Aggarwal. It is now looking to raise Rs 500 crore in debt over the next three to six months, he said.
Till date, Revfin has raised Rs 625 crore, of which Rs 450 crore has been debt.
In the latest equity round, Omidyar invested $5 million (about Rs 42 crore), Companion Capital invested $3.8 million (about Rs 31 crore), and the Asian Development Bank invested $2.5 million (about Rs 21 crore).
Revfin, which operates in 23 states, will use the funds to expand operations, Aggarwal told ET.
The firm would also use the funds to deepen its market share in categories like three-wheeler electric vehicle (EV) financing, as well as for expanding to battery financing, charging infrastructure financing, etc. The company provides financing to EV buyers in the two-wheeler, three-wheeler and four-wheeler segments. Though it also works with fleet operators like Bengaluru-based Shoffr, about 80% of its business comes from direct customers who buy EVs for commercial purposes.
“EV financing has a lot of challenges, like the lack of a secondary market for many vehicles, a vehicle servicing ecosystem that is still not mature… we focus on creating an ecosystem and building relationships with everyone, right from the OEMs to the retailers, when providing financing,” he said.
A large number of Revfin’s customers are first-time borrowers as well as first time drivers, so partnerships with other players in the EV ecosystem becomes essential to underwriting these borrowers, Aggarwal said.
Over the next two to three years, the firm intends to bring in half of its revenue from business-to-business (B2B) customers, he said.
In FY23, Revfin’s revenue stood at Rs 37 crore while breaking even on a profit after tax (PAT) basis, Aggarwal told ET, adding that the firm is at an annualised revenue run-rate of Rs 100 crore and is looking to report Rs 80 crore in revenue in FY23, with about Rs 8 crore in PAT.
“In the current environment, having a path to profitability is essential in every investor conversation,” he said.
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