Finnfund announces new investment in Indian green financing

Finnfund has announced a 12 million US dollars senior secured loan facility to Mufin Green Finance Ltd, an Indian non-banking financial company that finances sustainable, income‑generating assets, with a strong focus on electric mobility—including electric vehicles (EVs), charging infrastructure, and battery swapping—as well as solar projects.

Mufin Green Finance’s mission is to deliver green finance to underserved customers by providing loans to small businesses and individuals. The majority of its customers are first‑time loan takers, underscoring the company’s role in advancing financial inclusion and enabling economic empowerment, in addition to mitigating climate change.

“At Finnfund, we are excited to support Mufin Green Finance’s growth with a 12 million US dollars senior secured loan facility. Mufin Green Finance is focusing on green asset financing, including electric vehicles, for the micro, small and medium‑sized enterprise segment in India to drive climate mitigation, broaden financial inclusion, and support economic empowerment across underserved communities. Mufin serves a customer base where the majority are first‑time loan takers, including micro and small entrepreneurs who would otherwise have difficulties obtaining financing,” says Antti Partanen, Investment Manager at Finnfund.

“We are pleased to initiate this new partnership in India with a responsible and well-managed nonbank financial institution that delivers significant impact, particularly in the micro, small and medium-sized enterprise sector,” adds Partanen.

Supporting the expansion of electric mobility in India is closely aligned with Finnfund’s strategy, which prioritises climate and nature, digitalisation, and promoting decent jobs and livelihoods. Making EVs more accessible helps reduce both air pollution and greenhouse gas emissions—an impact that is especially critical in densely populated cities with heavy traffic congestion. This also strengthens economic inclusion by expanding opportunities for underserved populations to participate in and benefit from the growing green economy.

In addition to green asset financing, Mufin Green Finance offers mediclaim financing, providing loans for health insurance premiums to improve insurance penetration, healthcare affordability, and financial inclusion among underserved and first-time borrowers.

“This funding from Finnfund supports our strategic focus on scaling climate-linked and inclusive financing in a measured and sustainable way. It enables us to deepen our presence in electric vehicle and solar lending while expanding access to insurance premium financing for underserved segments. The partnership reflects alignment on long-term impact, prudent risk management, and governance-led growth,” says Kapil Garg, Managing Director, Mufin Green Finance Limited.

Finnfund in brief

Finnfund is a Finnish development financier and impact investor. Finnfund builds a sustainable future and generates lasting impact by investing in businesses that solve global development challenges with Finnish added value. Each year, we invest 200–250 million euros in 20–30 companies in developing countries. Our focus is particularly on digital infrastructure and solutions, clean energy, forestry, agriculture, and on providing funding for small and medium-sized enterprises through financial institutions. Today, Finnfund’s investments, commitments, and investment decisions total about 1.3 billion euros. The company has about 100 employees based in Helsinki and Nairobi. For more information, please visit https://www.finnfund.fi/en.

More information

Antti Partanen, Investment Manager, Finnfund tel. +358 41 468 6333, antti.partanen@finnfund.fi

Media contact: Terhi Elomaa, Communications Manager, Finnfund tel. +358 40 194 0281, terhi.elomaa@finnfund.fi