Climate-focused non-banking financial company Ecofy has raised ₹380.5 crore (about $42 million) in a Series B funding round co-led by British International Investment (BII) and Finnfund.
The round also saw participation from existing investors Eversource Capital and FMO. The funding marks a major step for Ecofy as it expands its green financing platform for clean energy and sustainable technologies.
Funding to Expand Green Lending Portfolio
Ecofy said the newly raised capital will be used to accelerate expansion in several key sectors of climate finance.
The company plans to strengthen financing across:
- Rooftop solar installations
- Electric vehicles (EVs)
- SME climate-focused financing
The funds will also help strengthen Ecofy’s balance sheet while supporting its long-term growth strategy in sustainable lending.
Previous Funding and Financial Support
Ecofy has raised multiple rounds of capital since its launch.
Key funding milestones include:
- ₹90 crore equity funding in January 2024 from FMO
- ₹110 crore long-term loan facility in March 2025 from Denmark’s Investment Fund for Developing Countries (IFU)
With the latest Series B investment, Ecofy is further strengthening its capital base to support the growth of climate finance solutions.
About Ecofy
Ecofy was founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan.
The company operates as a climate-focused NBFC, providing financing for sustainable technologies and environmentally friendly projects.
Its financing solutions support sectors such as:
- Electric vehicles
- Rooftop solar systems
- Energy-efficient equipment
- Energy storage solutions
- Waste recycling
- Water management projects
Through these initiatives, Ecofy aims to accelerate the transition toward a net-zero carbon economy.
Growth Strategy and Partnerships
Ecofy plans to scale its operations through high-quality retail green lending.
To achieve this, the company is partnering with:
- Banks
- Financial institutions
- Equipment manufacturers
- Technology providers
The company currently works with more than 100 OEM partners and collaborates with over 23 banks and financial institutions.
Rapid Business Growth
Ecofy has reported strong growth over the past year.
According to financial data:
- Revenue from operations increased 4.8X, rising to ₹93.3 crore in FY25 from ₹19.19 crore in FY24.
- However, the company’s losses also increased 15.6% to ₹42.28 crore during the same period.
Despite higher losses, the company continues to scale rapidly as it expands its green financing portfolio.
Customer Reach and Assets Under Management
Over the past three years, Ecofy has significantly expanded its customer base.
The company claims to have served more than 1.2 lakh customers across sectors such as rooftop solar and electric mobility.
Ecofy’s assets under management (AUM) have now crossed ₹1,400 crore, supported by:
- A 100% retail loan portfolio
- Strong asset quality
- A capital adequacy ratio of around 50% after the latest fundraise
Rising Demand for Climate Finance
The funding comes at a time when demand for green financing and sustainable technologies is growing rapidly.
Governments and businesses worldwide are investing heavily in climate solutions, including renewable energy, electric mobility, and energy-efficient infrastructure.
Financial platforms like Ecofy play an important role in enabling individuals and small businesses to adopt sustainable technologies by providing accessible financing options.
Conclusion
With its ₹380.5 crore Series B funding, Ecofy is strengthening its mission to finance climate-friendly technologies and support India’s transition to a low-carbon economy.
By expanding financing for electric vehicles, rooftop solar, and sustainable infrastructure, the company aims to become a major catalyst in building a net-zero future.
