Ecofy Raises $42M to Expand India’s Green Finance for EVs and Solar

Ecofy raised $42 million in equity. The round included British International Investment and Finnfund Digital Access Impact Fund I, along with existing investors Eversource Capital and FMO.

Ecofy provides financing for rooftop solar, electric vehicles, and SME segments. The company serves over 120,000 customers and has partnerships with more than 100 OEMs and over 23 banks and financial institutions.

The funds will be used to expand its lending portfolio across these segments and support business growth.

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.”

Shilpa Kumar, Managing Director and Head of India at British International Investment stated, “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. Our investment supports India’s clean energy transition and reinforces BII’s commitment to backing innovative platforms that drive sustainable growth and carbon reduction. We’re delighted to partner with Eversource, DAIF and FMO to support Ecofy as it scales its impact nationwide.”

Aditya Mohan, Senior Investment Officer at FMO, the Dutch Entrepreneurial Development Bank commented, “Accelerating the transition to sustainable energy systems largely depends on the availability of long-term, responsible capital at the retail level. Ecofy has consistently demonstrated strong fundamentals in building a specialised green finance platform with disciplined growth and sound governance. We are pleased to continue our support as the company expands its reach and deepens its contribution to India’s clean energy and climate finance ecosystem.”

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