Hindon Mercantile Ltd: Complete Analysis (Financials, Business Model & Future Outlook)

Hindon Mercantile Ltd. is a financial services company incorporated on 14 August 1985. The company is headquartered in New Delhi, India. HML’s business model is centred around lending solutions, co-lending partnerships, and fintech-driven financial products, including personal loans, business loans, and supply chain financing. The company got officially registered as a non-deposit Non-Banking Financial Institution with the Reserve Bank of India on 26 November 2002. Over the years, it has positioned itself as a regulated financial services provider and offered customer-centric financial solutions.

Key Financial Highlights (FY 2023-24)

The key financial highlights for (FY 2023-24) are as follows:

(Note: Figures are estimates as per publicly available standalone financial reports)

Hindon Mercantile Ltd. - An Overview

Here are some key facts about the Hindon Mercantile Ltd.

Origin and History

A brief overview of the history of Hindon Mercantile Ltd.

1985: Incorporation and Foundation

Hindon Mercantile Ltd. was incorporated on 14 August 1985 as a public limited company in Delhi.

2002: Registered as an NBFC

The company got registered as a non-deposit NBFC with the Reserve Bank of India in 2002. This made the company enter a regulated lending ecosystem, offering credit and financial services all under the regulated supervision of the Reserve Bank of India.

2022: Acquired APM Finvest (Mufin Green Finance)

In 2022, Hindon Mercantile Ltd. acquired APM Finvest, which was later rebranded as Mufin Green Finance. With this, the company made its entry into the electric vehicle and Green energy financing segment.

2024: Agreement to acquire stake in LKP Finance Ltd.

In August 2024, Hindon Mercantile Limited agreed to acquire approximately 45.32% stake in LKP Finance Ltd for ₹140 crore. The deal was completed in early 2025:

• Strengthened Hindon’s position in the NBFC space
• Expanded the group’s overall financial services footprint
• Enhanced access to regulated lending capabilities

2024 - Present 

Today, Hindon Mercantile Ltd has developed itself into a multi-layered financial organisation that offers financial services across sectors like

• Lending (retail & MSME)
• Fintech & digital payments
• EV & green financing
• Insurance and forex services

Leadership and Management

Mr Kapil Garg is the current promoter and managing director of Hindon Mercantile Ltd. He acquired the company in 2019 and transformed it into a lending platform that has a strong focus on EV and green energy financing.

Board of Directors

Here is a brief overview of the board of directors of Hindon Mercantile Ltd.

(Note: The board of directors represented here is based on the latest available public sources as of 2026 (Tracxn updated March 2026, Acuité Ratings Nov 2025, and aggregator platforms). These may vary as per different sources)

Business Operations

Hindon Mercantile Ltd. operates nationwide with both physical and digital distribution strategies. The product portfolio of the company includes:

• Personal Loans
• Business Loans
• Loans against property
• Machinery and Equipment loans
• Supply chain finance
• Education loan

HML operates a diversified lending model. It raises funds (deposits via partners, wholesale borrowings, equity) and lends primarily to underserved segments, earning interest income. HML’s Revenue streams include:

• Interest Income on the loan portfolio.
• Fees and other income (loan processing fees, etc.).
• Subsidiary contributions

Financial Overview

Here is a brief financial overview of Hindon Mercantile Ltd.

Financial Performance

(Note: Figures are estimates as per publicly available standalone financial reports)

Balance Sheet Snapshot

(Note: Figures are estimates as per publicly available standalone financial reports)

Key Insights

• Total assets grew 15.6%, mainly due to an increase in financial assets (core business).
• Financial assets form the majority (92–93%), showing the company is focused on lending/investments.
• Equity increased slightly (2.4%), indicating limited profit addition to net worth.
• Liabilities rose sharply (43.5%), mainly due to higher short-term obligations.
• Overall growth is largely funded through liabilities rather than equity.

Cashflow Statement

(Note: Figures are estimates as per publicly available standalone financial reports)

Key Insights

• Operating cash flow turned negative, indicating weak core cash generation.
• Continued investment outflows reflect ongoing business expansion.
• Positive financing cash flow shows support from funding/borrowings.
• Overall cash declined, leading to a lower closing cash balance.

Previous Funding History 

Hindon Mercantile Limited (HML) is an unlisted Non-Banking Financial Company (NBFC) relying primarily on internal financial sources, borrowings, and strategic group-level transactions for growth.

As per reports, in March 2026, HML (as promoter) subscribed to 76,53,061 convertible warrants as part of the ₹324 crore preferential equity and warrants issue by its flagship subsidiary, Mufin Green Finance Limited. This subscription formed part of a larger capital raise by the subsidiary to strengthen its balance sheet and support expansion in green and EV financing. The transaction resulted in some dilution of HML’s stake in Mufin Green Finance.

Overall, the company has relied primarily on borrowings and internal accruals for its operations, with the most significant capital infusion happening at the subsidiary level rather than through frequent direct equity raises at the parent company.

Business Strengths

Over the years, Hindon Mercantile has worked to build itself a diversified financial unit. The strengths associated with Hindon Mercantile are as follows:

Varied Product Mix

Hindon Mercantile Ltd. has a diversified product mix, including Retail and SME lending, fintech (payments, PPI), green financing, insurance finance, and forex. This has enabled it to cross-sell its products and diversify the business risk.

Integrated Fintech Platform

Its Mufinpay app and PPI license enable integrated digital reach, customer data, and low-cost origination. According to reports, over 500,000 prepaid cards have been issued, facilitating the distribution of finance and insurance.

Niche Segments

Hindon Mercantile has strategically focused on high-growth segments, such as EV & renewable financing, through its subsidiary unit, Mufin Green Finance. 

Growth by acquisition

HML rapidly scaled by acquiring NBFCs. (E.g. APM Finvest for EV lending; LKP Finance for wholesale/retail finance; investment in EV-battery-leasing firm UrjaMobility.) These moves have boosted its AUM and long-term growth.

Future Outlook and Growth Plans

The future outlook and growth plans by Hindon Mercantile Ltd. are as follows:

• In March 2026, it completed a major ₹324 crore preferential equity and warrants issue. The capital is raised with a purpose to scale green financing, by expanding lending capacity, improving balance sheet strength, and accelerating disbursements in EV financing (two-, three-, and four-wheelers), solar projects, and related green assets.
• As per some media reports in Dec 2024, specific targets include funding ₹500 crore in solar projects and supporting 2 lakh solar installations by end-2026. The company has already entered solar financing with initial transactions and aims to diversify beyond EVs.

The Hindon Mercantile group is optimistic about rapid scaling in the green economy, supported by the government's initiatives for EVs and renewables.

Disclaimer: This company analysis is based on the information provided by publicly available sources and media reports. As an unlisted company, the complete real-time information of Hindon Mercantile is limited. Future performance depends on multiple factors such as regulatory changes, market conditions, and execution risks. Investors should conduct their own independent research and seek professional advice before making any investment decisions.