Muthoot Capital announces Rs 100cr funding for EV expansion: A drive towards sustainability

Muthoot Capital Services Limited (MCSL), a leading non-banking financial company (NBFC) under the prestigious Muthoot Pappachan Group, has recently unveiled a partnership with a distinguished UK-based development financial institution. This collaboration secures a significant ₹100 crore in long-term debt funding, facilitated by Axis Bank, to enhance its electric vehicle (EV) portfolio. This initiative is not only a milestone in Muthoot Capital‘s commitment to sustainable mobility but also a strategic move to boost the adoption of electric vehicles in India, focusing on lower-middle-income demographics.

The investment marks one of the largest sustainability-driven endeavours for Muthoot Capital, spotlighting the company’s proactive role in the electric vehicle sector through co-lending ventures. The funding is set to propel the company’s EV portfolio expansion by an estimated ₹200 crore during the fiscal year 2025. This aligns with the national agenda to transition towards eco-friendly transportation solutions, reflecting Muthoot Capital’s dedication to environmental stewardship.

Thomas George Muthoot, Managing Director of Muthoot Capital and Director of the Muthoot Pappachan Group, expressed optimism about the partnership’s potential to catalyze sustainable practices within the industry. “Electric two-wheelers are becoming increasingly popular in India, and through this partnership, we are poised to drive forward-looking solutions in the EV sector,” Muthoot stated, underscoring the company’s focus on providing sustainable financial options to its clientele.

Mathews Markose, CEO of Muthoot Capital, elaborated on the transformative impact of the funding, emphasizing its role in making electric vehicles more attainable and affordable for consumers in semi-urban and rural locales. “This initiative will greatly enhance the accessibility and affordability of EVs, aligning with our goal to improve the convenience of EV ownership,” Markose noted.

Operating across 20 states with an extensive network of Muthoot Fincorp branches, MCSL offers a wide array of financial products, including loans for two-wheelers, used cars, and commercial vehicles. Primarily serving rural and semi-urban markets, Muthoot Capital is strategically positioned to meet the diverse financial needs of individuals and small businesses in these areas.

Founded in 1887, the Muthoot Pappachan Group is a venerable business conglomerate in India, with interests spanning financial services, hospitality, automotive, real estate, IT services, healthcare, precious metals, and alternative energy. The group boasts over 40,000 employees and more than 5,200 branches nationwide, reinforcing its substantial footprint in the Indian economy. Bollywood celebrities Shah Rukh Khan and Vidya Balan, serving as brand ambassadors, amplify the group’s visibility and appeal. Furthermore, the Muthoot Pappachan Foundation, the CSR wing of the group, actively engages in initiatives geared towards health, education, the environment, and livelihood enhancement.