Metafin Raises $10Mn In Series A Round Led By Vertex Ventures SEAI

Metafin, a Solar loans-focussed non-banking finance company (NBFC) has raised $10 million in a Series A funding round led by Vertex Ventures Southeast Asia and India.

The funding round, which included both equity and debt, saw participation from existing investors Prime Venture Partners and Varanium Capital, along with financial institutions like Northern Arc and AU Small Finance Bank.

Funding utilisation

The startup will mainly use the fresh funds to expand from around 3,500 installations to about 10,000 projects over the next 12 to 18 months. A smaller part of the funds will be used to strengthen its senior management team and the rest will go toward improving its technology.

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The company is also in talks with banks and other financial partners to expand its lending services for its target customers. In February 2024, Metafin raised $5 million in an equity funding round led by Prime Venture Partners and Varanium Capital.

“Today, we have financed over 3,200 installations in 2,700 villages. The ambition now is to scale it up to about 10,000 installations and 8,000 villages across the states in which we are operating… This is largely carrying on to our strategy and theme around energy access in rural India,” said, Sandeep Chopra, cofounder of Metafin.

“Metafin’s technology-driven approach, along with their grassroots understanding of rural entrepreneurs and deep knowledge of credit underwriting, positions them as category leaders in the solar asset financing space,” said Nikhil Marwaha, senior executive director at Vertex Ventures Southeast Asia and India.

About Metafin 

Founded in 2019 by Sandeep Chopra and Aditya Shah, Metafin offers solar loans to small businesses and households in rural and semi-urban areas, working through a network of lenders and installation partners. It uses real-time energy data to make financing easier and more scalable.

Right now, Metafin mainly operates in Uttar Pradesh and Bihar. With the new funding, it plans to expand into Jharkhand, Chhattisgarh, Odisha and Madhya Pradesh.

Currently, Metafin’s own IoT system monitors 1,100 of its plants every two seconds, tracking energy use and identifying any issues. It can also remotely shut down plants if customers miss payments.

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