Green finance-focused NBFC Ecofy has raised ₹380.5 Cr ($42 Mn) in an equity round led by British International Investment (BII) and Finland-based Finnfund. The round also saw participation from existing investors FMO and Eversource Capital.
Founded in 2023 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy provides loans to small-medium enterprises (SME) and individuals for two and three wheeler electric vehicles, commercial and industrial rooftop solar installations, energy efficient equipment financing and supply chain financing loans. It provides loans in the range of ₹1 Lakh to ₹1.5 Cr for a tenure between six months to five years.
The lender is planning to use the fresh capital infusion toward scaling credit offerings for sustainable assets further.
The Mumbai-based NBFC claims to have served 1.25 Lakh customers till date, with assets under management worth ₹1,400 Cr. It has partnered with over 23 banks and financial institutions for its co-lending activities, along with over 100 original equipment manufacturers (OEMs).
Earlier, it announced a strategic partnership with Ather Energy to offer customers access to its green financing options, including vehicle loans, leasing solutions and assured buyback structures. It signed a similar deal with Motovolt Mobility in September last year.
“Over the last three years, we have created a technology-led, retail-focused green finance platform with strong unit economics, disciplined risk management, and scalable impact. This capital allows us to deepen our offerings, expand distribution, and continue building a high-quality green lending franchise, while delivering attractive, risk-adjusted returns,” cofounder Nambiar said.
Ecofy last raised a debt of $12.5 Mn from Denmark’s Investment Fund for Developing Countries (IFU). In the past, it has raised close to $11 Mn in equity excluding the current round.
On the financial front, the NBFC’s net loss for the fiscal year FY25 increased 16% to ₹42.3 Cr from ₹36.6 Cr loss incurred in the previous fiscal. The company’s operating revenue grew nearly 3X to ₹102.9 Cr in the fiscal from ₹34.9 Cr.
The green financing sector has scaled considerably in the past few years on the back of a demand for ecofriendly solutions to support sustainability mandates.
Notably, many of these financing startups have received investments from global impact funds interested in India’s sustainable solutions sector, with the solar energy sector alone projected to reach a size of $34.7 Bn by 2033 from $12.4 Bn in 2025.
For instance, solar financing startup Aerem raised $15 Mn last month in a round led by Sumitomo Mitsui Banking Corporation’s VC arm SMBC Asia Rising Fund, which also saw participation from BII.
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