Astranova Mobility arm gets NBFC licence, targets Rs 5,000 cr AUM in 5 years

New Delhi: Astranova Mobility on Wednesday said its lending subsidiary, NovaFusion Capital, has received approval from the Reserve Bank of India to operate as a Non-Banking Financial Company (NBFC).

The company is targeting Rs 5,000 crore in assets under management (AUM) over the next five years, Astranova Mobility Founder & CEO Kunal Mundra told PTI.

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"So with the help of this NBFC, our aspiration really is to deploy Rs 5,000 crore worth of financing in the next five years. It will be primarily for electric vehicles and only for commercial operators. That means everyone who earns a livelihood with the help of these assets," Mundra shared.

Shraddha Srimal, CEO of NovaFusion Capital said the focus will be on financing India's transition to electric mobility.

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"Our area of play is really across any kind of climate-positive assets. Partly the focus is going to be electric vehicles because that's where we see the main play from a commercial transition point of view," Srimal said.

She highlighted that with India estimated to require USD 100 billion for transitioning its commercial vehicles to electric mobility, the opportunity is not simply to finance more vehicles, but to build a new credit architecture around clean mobility, suitable for its mass adoption.