While 70 per cent of the business will focus on three-wheeler financing, the remaining 30 per cent will focus on new businesses
Electric vehicle (EV) digital financing platform Revfin is seeking to secure up to Rs 500 crore in the next 12 months to support its business expansion initiatives, according to founder and CEO Samir Aggarwal.
The company's expansion plans include the commercial rollout of its battery financing services before the end of this fiscal year. The platform is also aiming to achieve a revenue target of Rs 90 crore this fiscal year, driven by an expanded portfolio that includes financing for two-wheelers, three-wheelers, and four-wheelers for commercial purposes, as highlighted by Aggarwal.
Established in 2018 to finance electric three-wheelers, the Delhi-based digital lender has broadened its business to encompass financing for two-wheelers and four-wheelers, as well as providing vehicle leasing and rental services.
"We have raised about Rs 300 crore so far, which has been a combination of equity and debt. And the plan is now to raise about Rs 500 crore in the next 12 months," Aggarwal told PTI. He added that the company is in discussions with several venture capitalists, and the future funding infusion will comprise a combination of debt and equity.
"Potentially, we will be looking at large VCs to invest in our company," Aggarwal said, adding that the fresh capital is primarily intended for EV financing.
Aggarwal mentioned that 70 percent of the business will focus on three-wheeler financing, while the remaining 30 percent will concentrate on new businesses.
"We have been able to grow the business at a substantial pace with 3- to 4-fold year-on-year growth every year, and this has been the trajectory in the last four years. While we are growing at the same time, we are also a profitable business," he said.
The company is targeting revenue of Rs 90 crore this fiscal year, compared to Rs 33 crore in the previous year. Aggarwal noted that total disbursements are expected to be over Rs 500 crore this fiscal year, up from Rs 180 crore in FY23.
"We are also looking at going beyond providing loans and financials. We have started doing vehicle leasing and rentals, and we have also started working on battery financing, providing battery as a service or supportable batteries along with the vehicles that go with it," Aggarwal said.
"But we've been very cautious on it because financing a standalone battery is a bit of a challenge from a risk perspective. It's very difficult to keep track of batteries. So we have started doing this (financing) selectively at the moment with a simple approach- Let's do some pilots in different locations to see how this works, and when we are convinced this works, then we will start scaling," he said.
Revfin is looking at the commercial rollout of the battery financing service in the next 3–4 months, he said. Additionally, he said, the company is also looking at financing charging stations, retrofits and electric tractors, among others, and added that "in all, we should have about eight different product verticals by March next year."