Solar Finance Startup Metafin Gets $5 Million Funding

Metafin, a leading cleantech-focused NBFC, has successfully raised $5 million in equity funding, led by Prime Venture Partners and Varanium Capital. This investment backs Metafin’s approach to accelerating rooftop solar adoption and financing in rural India.

Metafin plans to utilize funds to expand across states, grow its loan book, enhance its technology and IoT stack, and hire key talent.

Founded in 2019 by Sandeep Chopra and Aditya Shah, Metafin is on a mission to help businesses accelerate the move from fossil fuel to cleaner sources of energy. Currently specializing in rooftop solar loans for semi-urban and rural MSMEs, Metafin has strategically positioned itself to address the substantial and often overlooked market gap of providing affordable power to over 5 million rural businesses. The company’s approach, combining its own NBFC capabilities with a strong network of lending partners and installers, lays the foundation for its long-term vision as a comprehensive clean energy solutions provider.

Sandeep Chopra, Founder & CEO, says “We believe in empowering the backbone of India’s economy – its MSMEs. My journey from banking to founding Metafin stems from a passion to bridge the energy and financing gap at a retail scale and deliver significant positive climate impact. In addition to our climate impact, every plant we enable helps India a) increase energy inclusion b) broaden financial inclusion; and c) improve livelihoods. Our goal is to finance over 1 million such projects in the next 5 years.”

“Although the transition to solar seems inevitable, Metafin has addressed the key roadblocks – affordability and distribution – with a technology-first, partnership-driven mindset. Whether you are an atta-chakki (flour mill), a gas station, an EV charging station, or any other MSME in India, Metafin has put together a brilliant, proven solution. We’re delighted to partner with Sandeep, Aditya and team in their journey of Solarizing Bharat” said Sanjay Swamy, Managing Partner, Priven Advisors, Advisory to Prime Venture Partners.

“Rural solar is undeniably a game-changer, capitalizing on the compelling cost advantage over conventional power sources. Metafin is at the forefront of financing rooftop solar installations, ushering in a new era of sustainable energy in rural India. The triple benefits are profound – not only curbing carbon emissions but also yielding significant cost savings for small businesses while reducing dependency on diesel generators, a pivotal step in cutting fuel imports. The fact that these loans are in RBI’s PSL mandate is an added benefit. The potential for growth is immense, aligning with Varanium Capital’s commitment to catalyzing impactful ventures.” said Aparajit Bhandarkar, Partner at Varanium Capital.

Aditya Shah, Co-Founder, emphasizes, “While utility-scale projects have met installation targets, retail-scale solar lags due to a dearth of specialized financing and unreliable installations—challenges we actively address. Our vision extends beyond capital; it’s a commitment to empower communities and make a dent in the reversal of carbon emissions.”

Metafin claims to have enabled almost 1,000 installations in UP & Bihar (14+ MWs) of which 90% are off-grid, replacing diesel directly. These installations, the company claims, have helped avoid 147 million Kgs of CO2 to date.