Mufin Green Finance, an NBFC spearheading in Green financing, announced the acquisition of a 20 per cent stake in UrjaMobility.  

The NBFC added in its statement that the focus of both companies, after the strategic partnership, is incorporating advanced Li-Ion batteries, which offer strong control capabilities for any financial technology (fintech) platform. 

“The cornerstone of this collaboration is the integration of advanced Li-Ion batteries, providing unparalleled control for fintech platforms with IoT connectivity, thermal analytics, and remote immobilisation capabilities. These batteries, built with Lithium Iron Phosphate (LFP) technology, boast over 2000 charging cycles, ensuring a robust product life cycle exceeding 4 years,” it added. 

The market for new E-Rickshaws is on a remarkable growth trajectory at 15 per cent CAGR, contributing significantly to the livelihoods of individuals from socio-economic backgrounds.  

The current market size stands at approximately 600,000 units per year and is anticipated to surpass 1 million units annually by 2030. 

Pankaj Chopra, founder at UrjaMobility said “With the existing base of almost 3 Million E-Rickshaws operating in the market, there are approx 1 to 1.5 million units that are eyeing battery replacement every year assuming the Lead Acid Battery lasts between 15-20 months. Most of the battery replacement is happening with Lead-Acid batteries being a cheaper version as compared to the cost of a Lithium-ion battery. To ease this financial burden, UrjaMobility provides a Battery as a service (BaaS) model that offers an easy Monthly Lease Value to the end user."

“Looking at the wide adoption of Lithium Ion batteries presented as a paradigm shift as it not only enhances operational ease but also converts 50 per cent of the overall asset cost to an easily manageable monthly lease value, significantly reducing capital expenditure. Foreseeing this as a monumental shift to bolster the EV ecosystem, we are delighted to partner with UrjaMobility and envision by 2030, the commercial use of electric two-wheelers (E2W) will be 100 per cent, totaling between 10-12 million units with a product life cycle of 3 years," said Kapil Garg, MD at Mufin Green Finance. 

Currently, the size of Last Mile Delivery (gig workers) is 5 million people operating either on E2w or ICE2w. With delivery on the rise, this market is expected to grow at 25 per cent CAGR. 

Founded in 2016 by Garg, Mufin Green Finance is a Bombay Stock Exchange (BSE) listed NBFC company. It has also partnered with the Indian Renewable Energy Development Agency (IREDA) to enhance EV penetration efforts in the country. The NBFC plans to reach more than 1,00,000 consumers after the partnership.