Ecofy Raises $12.5 Mn From Denmark’s IFU To Support Green Transition

Ecofy Finance, a non-banking financial company (NBFC) focused on supporting India’s green transition, has raised INR 104 Crore ( around $12.5 million) long-term loan facility from the Investment Fund for Developing Countries (IFU).

The fresh proceeds will help Ecofy expand its loan offerings for electric two- and three-wheelers and rooftop solar systems. The goal is to support over 1 million electric vehicles (EVs) and 1.5 gigawatts of solar capacity within the next six to seven years. 

This funding aims to fill the "last-mile" funding gap for consumers, small businesses and transport operators who are usually excluded from traditional credit options.

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"The long-term capital provided by IFU empowers us to scale our climate-focused lending solutions while breaking down barriers for underserved borrowers. By combining innovative financing models with a strong commitment to sustainability, we aim to enable access to electric vehicles and rooftop solar, and to drive systemic change toward a cleaner, more inclusive economy," said Vivek Khandelwal, Treasury Head of Ecofy.

"IFU is very pleased to support Ecofy in its pursuit to provide accessible climate finance to the masses. This investment aligns well with IFU’s strategy, as India is a core focus country and climate mitigation and access to finance are key impact priorities for IFU," said, Vibhor Singhal, Investment Manager at IFU.

Green financing for underserved communities could help solve funding challenges in important sectors, which are essential for India to reach its goal of net-zero emissions by 2070.

The funding from IFU, provided as long-term debt, is part of the green strategic partnership between India and Denmark, formed in 2020 when the prime ministers of both countries signed the agreement, according to Ecofy.

About Ecofy

Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy Finance is a non-banking finance company (NBFC) that provides loans for products in the green sector. It currently offers financing for electric vehicles (two- and three-wheelers), rooftop solar units and small and medium businesses (SMEs). 

The company aims to build a retail-focused digital platform through various partnerships.

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