March 25, 2025: Ecofy Finance, claimed to be India’s Green-only NBFC has raised $12.5 million long-term loan facility to widen its loan portfolio for electric two- and three-wheelers and rooftop solar systems, targeting over 1 million EVs and 1.5 gigawatts of solar capacity within six to seven years.
The NBFC aims to bridge the “last-mile” climate funding gap for consumers, small businesses, and transport operators often excluded from traditional credit channels.
Vivek Khandelwal, Ecofy’s Treasury Head, said “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.”
Ecofy Aims to Tap India’s Growing EV Market projected to scale at the rate of 49% annually
According to India Energy Storage Alliance (IESA), India’s EV market, particularly for two-and three-wheelers, is projected to grow at a compound annual rate of 49% through 2030.
Currently, rooftop solar installations are on the rise as households and SMEs seek to cut energy costs and emissions. Green financing for unmet communities could help address financing bottlenecks in these sectors, which are vital to India’s goal of accomplishing net-zero emissions by 2070.
“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,” Vibhor Singhal, Investment Manager at IFU, said.
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, Ecofy said. Axis Bank acted as the exclusive financial advisor to Ecofy for the transaction.
The latest round of funding was secured from Denmark’s Investment Fund for Developing Countries (IFU).
