Each year, the AFI Inclusive Fintech Showcase spotlights digital solutions with the promise to improve access to financial services for low-income populations. In our second interview with the 2024 Showcase winners, we profile Revfin, an Indian firm which helps independent drivers become electric vehicle operators.

What problems is Revfin trying to solve?

Revfin seeks to address several key challenges in the electric vehicle (EV) adoption landscape:

• Inclusivity: by targeting underserved communities, Revfin aims to empower them with knowledge, independence, and accessibility to EVs, thereby bridging gaps in awareness and resources.
• Financing Solutions: Revfin aims to be a pioneering force in the realm of EV loans in India, offering fast and intelligent financial solutions. This is crucial, especially for individuals without formal credit scores or facing bias in traditional face-to-face loan processes.
• Technological Advancements: through partnerships with manufacturers, Revfin is able to offer state-of-the-art vehicles. This contributes to the overall evolution of the EV ecosystem, making technologically advanced options more accessible.
• Infrastructure Development: Revfin is committed to building infrastructure that simplifies the process of EV adoption, reducing costs and streamlining procedures. This commitment includes facilitating financing options for EVs, particularly important given the novelty of electric vehicles and the lack of financing options for them.

Overall, Revfin aims to provide financial assistance to underserved segments, particularly those in small cities and towns, while also addressing the climate and socio-economic impacts of EV adoption. Additionally, by enabling the creation of a credit history and digital footprint for the financially underserved, Revfin contributes to greater financial inclusion and empowerment.

What have been the most difficult aspects of growing Revfin until now?

Growing Revfin has presented several significant challenges:

• Absence of secondary market: this makes it challenging to navigate the financing landscape efficiently, and can hinder liquidity and flexibility in financial operations.
• Fragmented segment: the EV market, particularly in India, is fragmented, presenting difficulties in targeting and catering to diverse consumer needs effectively.
• No credit history: dealing with customers lacking a credit history poses a considerable challenge. Traditional credit assessment methods may not apply, necessitating innovative approaches to evaluate creditworthiness accurately.
• Limited access to banking services and financial products outside big cities: this lack of financial infrastructure complicates efforts to reach potential customers and provide them with suitable financing solutions.

Navigating these challenges requires adaptability, creativity, and a deep understanding of the unique dynamics of the EV market and the financial landscape in different regions.

What are your ambitions for the firm?

Our ambition for the firm is multifaceted:

• We aim to significantly contribute to the growth of the EV sector by financing US$ two billion worth of electric vehicles and related infrastructure by March 2028.
• Expanded presence: our goal is to establish a strong footprint across 25 states, enabling us to reach and cater to a wider audience.

• • Capture 20-25% market share in three-wheelers in at least 15 states: having already achieved this milestone in five states, we aim to replicate it in at least 15 states.
  • Strengthen partnerships: currently working with 18 manufacturers and 15 fleet operators, we aim to enhance our collaborations across the industry. This includes initiating partnerships for truck and bus financing, as well as for battery and charging infrastructure, to further bolster our offerings and support the EV ecosystem’s growth.