On 14 October 2026, Astranova Mobility announced that its lending subsidiary, NovaFusion Capital, had received approval from the Reserve Bank of India (RBI) to operate as a Non-Banking Financial Company (NBFC). The New Delhi-based company is targeting ₹5,000 crore in assets under management over five years, with financing focused primarily on electric vehicles (EVs) used by commercial operators.
Non-Banking Financial Companies
An NBFC is a company engaged in financial activities such as lending, leasing or investment, but it is not a bank. The RBI regulates NBFCs under the Reserve Bank of India Act, 1934. Section 45-IA of the Act requires an NBFC to obtain a certificate of registration from the RBI and meet prescribed conditions to commence or carry on business as an NBFC. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on themselves. Deposit-taking powers are available only to eligible NBFCs that meet RBI conditions.
NovaFusion Capital’s Financing Plan
NovaFusion Capital plans to finance commercial EVs and other climate-positive assets. Its stated target is to deploy ₹5,000 crore in financing over the next five years, and capital for an initial deployment of ₹200 crore has been secured. The focus on commercial operators includes people who earn a livelihood using financed vehicles or other assets. CEO Shraddha Srimal has identified electric mobility as a principal area of financing.
Commercial Electric Mobility Finance
Astranova Mobility has operated in EV leasing and financing for more than five years. It has leased over 35,000 EV assets, valued at more than ₹450 crore. Founder and CEO Kunal Mundra cited an estimated financing requirement of $100 billion for India’s transition of commercial vehicles to electric mobility. Financing for commercial vehicles can cover asset acquisition, while leasing provides users access to vehicles without requiring outright purchase.
Important Facts for Exams
- The Reserve Bank of India was established under the Reserve Bank of India Act, 1934.
- The RBI commenced operations on 1 April 1935.
- NBFCs are regulated by the RBI but are not banks.
- Assets under management refers to the total value of assets managed by a financial institution for clients or investors.
NovaFusion Capital is based in New Delhi and is a subsidiary of Astranova Mobility. Its announced five-year financing target is ₹5,000 crore.
