Ecofy, a non-banking financial company backed by Eversource Capital, on Monday announced that it has raised $42 million (around Rs 380.5 crore) in fresh equity financing.
The funding round saw participation from two global development finance institutions (DFIs) — British International Investment (BII), the UK’s development finance institution and impact investor, and the Finnfund Digital Access Impact Fund I (DAIF), managed by Finnfund, the Finnish development finance institution. Both joined the round as new investors.
Existing investors, including Eversource Capital and FMO, also participated in the funding round.
In a statement, Ecofy said the growth capital will support its expansion across rooftop solar, electric vehicles, and small and medium enterprise (SME) financing.
Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy provides financing solutions for environmentally sustainable sectors, including retail electric vehicles, rooftop solar, and SME initiatives focused on improving energy efficiency. The company operates across India, serving both retail customers and small and medium enterprises.
“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,” said Rajashree Nambiar, Co-founder, Managing Director & CEO, Ecofy.
Ecofy said it currently serves more than 120,000 customers across rooftop solar, electric vehicles, and other sustainable asset categories. The company has grown its assets under management (AUM) to over Rs 1,400 crore, supported by a fully retail loan book and partnerships with more than 100 OEMs and over 23 banks and financial institutions.
“Ecofy’s retail-focused green finance model is enabling households and small businesses across India to access affordable climate solutions, from e-mobility to rooftop solar and green loans,” said Shilpa Kumar, Managing Director and Head of India at British International Investment.
