Digital electric vehicle financing platform Revfin has raised Rs 100 crore of debt, which it plans to use to expand into new geographies to finance three-wheelers and foray into lending loans to two-wheelers in the e-commerce delivery space, according to a top company official. It is seeking to enter states like Assam, Madhya Pradesh, Rajasthan and Punjab for financing electric three-wheelers as it aims to boost its revenue fivefold in the new financial year, up from at its current rate of Rs 12 crore per annum.
“We have recently taken on debt of just over Rs 100 crore. We want to use this debt to launch into new geographies first for financing electric three-wheelers. ‘Assam, Madhya Pradesh, Rajasthan, Punjab where our penetration is currently low,” founder and CEO of Revfin Services Pvt Ltd, Sameer Aggarwal, told PTI.
He added: “What we also want to do is be able to use this debt to get into the financing and leasing of electric two-wheelers, particularly in the area of e-commerce delivery.”
In September last year, the company raised $4 million through equity, he said, adding that being a lending organization “to grow we need to leverage our balance sheet We did a capital raise a few months ago and now we’re leveraging that equity to raise debt and it basically gives us a huge growth spurt and then after that we’ll do another fund raise clean.
The startup is currently present in 18 states with more than 350 dealerships and has partnerships with several original equipment manufacturers (OEMs).
“From a market perspective, we already have a very high market share in states like Bihar, Uttarakhand, Jharkhand and Uttar Pradesh. We are looking to build market share in the states and we want also create similar market share in multiple states,” Aggarwal added.
Regarding the company’s plans to make a foray into financing electric two-wheelers, he said: “We are focusing more on the commercial side. We will grant the loans to individuals who operate under a fleet operator or under an e-commerce platform. “
Highlighting the opportunities in the segment, he said, in the area of e-commerce and fleet operators, most financing is done at the wholesale level to the fleet operator, who is able to raise funds from organizations to buy their own vehicles.
However, individual drivers are still not funded. Fleet operators generally like to keep their assets light, but at this point they have to buy the vehicles on their own balance sheet because no one is willing to finance the drivers directly.
“So from our point of view, this is the biggest opportunity that we can really seize and finance the drivers, who are supported by e-commerce platforms, by providing them with employment and sufficient income, by generating opportunities “said Aggarwal. .
Asked about the company’s revenue target, he said: “Currently our revenue is around Rs 1 crore rupee per month which translates to a run rate of around Rs 12 crore (per year). We expect this to increase about four to five times in the next fiscal year.”
Revfin said it has so far disbursed loans of up to Rs 50 crore with a repayment record of 95%.
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