Green Financier Ecofy Secures USD 12.5 Million From IFU

 Ecofy Finance Private Limited, India’s green-transition-focused NBFC, has announced that it has secured a USD 12.5 million long-term loan facility from the Investment Fund for Developing Countries (IFU), a development finance institution owned by the Government of Denmark. The funding will support Ecofy’s further expansion into funding EVs and Solar systems in India.

Ecofy aims to address the critical last-mile climate finance gap in India’s consumer, transportation and small business sectors. The NBFC has set itself a goal to finance over 1 million electric vehicles and more than 1.5 GW of rooftop solar within the next 6-7 years. While it is well known that over 75% of vehicles are financed in India, India’s rooftop solar initiatives have also struggled due to lack of financing, or inadequate understanding of financing requirements, despite Solar’s obvious ROI proposition that can cover a significant part of the EMI over a 3 year or a five year period. Keep in kind that a system is usually rated to last for 25 years.  That has opened up a whole new opportunity for focused firms like Ecofy to carve a niche in the segment.

A part of the financing provided by IFU would be directed towards individuals and SMEs, who typically find traditional financing channels less accessible and therefore to a large extent are excluded from acting as green consumers.

Vivek Khandelwal, Treasury Head at Ecofy, said, “This investment is a pivotal moment for both, Ecofy and the green finance ecosystem in India. 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.”

Vibhor Singhal, Investment Manager at IFU, said “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.”

The financing from IFU, structured as long-term debt capital, is part of the green strategic partnership between India and Denmark, which was established in 2020 when the prime ministers of both nations signed the agreement.

About Ecofy:

Promoted by Eversource Capital and financial services sector veterans, Rajashree Nambiar and Govind Sankaranarayanan, Ecofy was launched in 2022 in Mumbai.