Green NBFC Ecofy Secures INR 380 Cr Funding from Global Investors

Ecofy, a Mumbai-based green non-banking financial company (NBFC), has raised INR 380.5 crore (around USD 42 million) in fresh equity funding from global development finance institutions and existing investors.

The new investment is expected to help the company expand its retail-focused green financing business across India.

The funding round included new investments from British International Investment (BII), the United Kingdom’s development finance institution and Finnfund Digital Access Impact Fund I LP (DAIF), managed by Finland’s development finance institution Finnfund. Existing investors Eversource Capital and FMO, the Dutch entrepreneurial development bank, also participated in the round.

Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy focuses on financing environmentally friendly products and services. The company provides loans for electric vehicles, particularly two- and three-wheelers, rooftop solar installations and energy-efficient equipment for micro, small and medium enterprises (MSMEs). Its lending services are delivered through an end-to-end digital platform.

The newly raised capital will support Ecofy’s expansion in key segments such as rooftop solar, electric mobility and SME financing. The company aims to scale its operations further while strengthening its financial position and partnerships with banks and financial institutions.

Since its launch, Ecofy has built a retail-focused green financing platform that serves more than 120,000 customers across India. The company’s assets under management (AUM) have crossed INR 1,400 crore. Its lending portfolio is entirely retail-based and supported by partnerships with over 100 original equipment manufacturers (OEMs) and more than 23 banks and financial institutions.

Following the fundraise, Ecofy’s capital adequacy ratio is expected to be around 50 percent, providing a stronger balance sheet to support future growth. The company now plans to expand its retail green lending activities as demand for sustainable financing solutions continues to rise.