Ecofy Finance, a Reserve Bank of India–registered NBFC founded in 2022, is scaling rapidly as a dedicated climate-focused lender. Concentrating exclusively on eco-friendly products and projects, the company has built a nationwide footprint and a growing customer base amid rising demand for sustainable financing in India.
Set up by industry veterans Rajashree Nambiar and Govind Sankaranarayanan, Ecofy was initially backed by Eversource Capital via the Green Growth Equity Fund. In three years, it has expanded to 26 states and more than 500 cities, serving over 1.3 lakh customers—reflecting strong adoption of green credit solutions across retail and MSME segments.
Focus on electric mobility and distributed solar
Ecofy’s core portfolio spans electric vehicles, rooftop solar, and sustainability-linked credit for small businesses. It finances electric two-wheelers and three-wheelers, and supports both residential and commercial solar installations—key levers in India’s energy transition and urban decarbonisation.
For MSMEs, the lender offers green business loans to purchase energy-efficient machinery and equipment, helping reduce operating costs and emissions. To deepen market access, Ecofy has tied up with more than 120 OEMs and over 23 banks and financial institutions.
The company has also launched Ecozaar, a marketplace that enables customers to discover, compare, and finance green products such as EVs and rooftop solar systems, integrating product discovery with tailored credit options.
New capital to accelerate growth
To fund its expansion, Ecofy recently raised USD 15 million in debt from Mirova, the sustainable investment arm of Natixis Investment Managers. The proceeds will be deployed to scale financing for rooftop solar and electric mobility, segments aligned with national clean energy targets.
Earlier, the company secured ₹380.5 crore in a Series B round led by British International Investment and Finnfund, with participation from existing backers Eversource Capital and FMO. The fresh capital has strengthened the balance sheet and supports continued portfolio growth.
Operational scale-up and financial performance
Ecofy reported a sharp rise in operating revenue to ₹93.3 crore in FY25 from ₹19.19 crore in FY24, reflecting increased disbursements and portfolio expansion. The company remains in investment mode, posting a loss of ₹42.28 crore during the year as it continues to build distribution, technology, and risk capabilities.
Assets under management have crossed ₹1,400 crore. According to the company, its green lending has contributed to an estimated reduction of over 25,000 tonnes of carbon emissions and supported incremental clean energy generation across multiple regions in India.
