Finnfund has announced a $12 million senior secured loan facility to Mufin Green Finance Ltd, an Indian non-banking financial company focused on financing sustainable and income-generating green assets.
The funding will support Mufin Green Finance’s expansion in electric mobility, including electric vehicles (EVs), charging infrastructure, and battery swapping solutions, as well as solar energy projects. The partnership aims to advance climate mitigation while strengthening financial inclusion among underserved customer segments.
Mufin Green Finance provides green financing solutions to small businesses and individuals, many of whom are first-time borrowers. By enabling access to affordable credit for electric mobility and renewable energy assets, the company plays a dual role in reducing carbon emissions and fostering economic empowerment.
Commenting on the investment, Antti Partanen, Investment Manager, Finnfund, said the financing aligns with Finnfund’s strategic priorities of climate action, financial inclusion, and livelihood creation. He noted that Mufin Green Finance serves micro and small entrepreneurs who often face challenges in accessing formal credit, making the partnership particularly impactful.
Finnfund highlighted that expanding access to electric mobility in India is critical for reducing air pollution and greenhouse gas emissions, especially in densely populated urban centres. Increased EV adoption also enables broader participation in the emerging green economy.
In addition to green asset financing, Mufin Green Finance offers mediclaim financing, providing loans to cover health insurance premiums. This initiative aims to improve insurance penetration, healthcare affordability, and financial resilience among underserved and first-time borrowers.
Kapil Garg, Managing Director, Mufin Green Finance Limited, said the funding would support the company’s long-term strategy of scaling climate-linked and inclusive finance responsibly. He added that the partnership reflects a shared focus on impact, governance, and sustainable growth.
The transaction marks Finnfund’s continued commitment to supporting climate-focused financial institutions in India while promoting inclusive economic development through access to clean technologies and essential financial services.
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