Ecofy has secured Rs 380.5 crore (around USD 42 million) in equity funding. The round includes new investments from British International Investment (BII) and Finnfund Digital Access Impact Fund I, managed by Finnfund. Existing investors Eversource Capital and FMO also participated in the round.
Investor Participation
British International Investment is the UK’s development finance institution, while Finnfund operates as Finland’s development finance institution. FMO is a development bank based in the Netherlands. These institutions typically invest in sectors linked to development and sustainability.
Business Overview
Ecofy operates as a non-banking financial company focused on lending for green assets. Its portfolio includes financing for rooftop solar installations, electric vehicles, and small and medium enterprises.
Use of Funds
The company plans to use the capital to expand its lending operations across its existing segments. The funding is also expected to support balance sheet growth and increase lending capacity.
Operational Metrics
According to company data, Ecofy has served over 120,000 customers and has assets under management exceeding Rs 1,400 crore. Its loan book is entirely retail-focused. The company works with more than 100 OEMs and over 20 banks and financial institutions. It reported a capital adequacy ratio of around 50% after the funding round.
Sector Context
The funding comes at a time when financial institutions are increasing focus on lending linked to renewable energy and electric mobility in India. Retail financing for such segments has been expanding alongside demand for clean energy and transport solutions.
Rajashree Nambiar, Co-founder, Managing Director & CEO, Ecofy said, “Ecofy was built on the belief that India’s green transition will be driven by everyday decisions made by small businesses, individual customers, and households. 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.”
Dhanpal Jhaveri, Vice Chairman, Everstone Group & CEO, Eversource Capital said, “Ecofy exemplifies Eversource’s strategy of building category-defining sustainable platforms in India. We are pleased to deepen our partnership with BII and FMO, and welcome Finnfund Digital Access Impact Fund I as Ecofy enters its next phase of growth. This capital raise positions Ecofy to scale profitably, while setting new benchmarks for retail green finance in India.”
Niklas Simola, Investment Manager at Finnfund stated, “We are eager to support along with Eversource, FMO and BII, Ecofy's pivotal role in accelerating India’s green transition by making clean energy assets accessible for consumers and MSMEs through its digital lending platform. This investment supports Finnfund Digital Access Impact Fund I’s goals by delivering commercial returns alongside climate impact and promoting gender inclusion through equitable digital financial services.”
