April 29, 2025: Metafin, engaged in the business of solar financing on Tuesday said it has secured $10 million in a Series A funding, to fund its plans to grow its book from about 3,500 deployments to about 10,000 projects by the middle of 2026.
Additionally the fresh capital will be used to fund senior management team acquistion, as well as grow the company’s tech stack.
Currently, Metafin’s proprietary IoT tech stack can monitor 1,100 of its plants every two seconds, churning out data regarding how much energy is consumed, what is working and what is not working. Metafin also has the ability to switch off these plants remotely if people default on payments.
Metafin to invest in upgrade, better data mining system
The new fundraise will enable the firm put in place a better data mining system that can help it curate better risk management tools, without relying on physical visits and other conventional methods alone. Metafin primarily services the micro, small, and medium enterprises (MSMEs) and rural households in India. It has provided financing for solar projects across 2,500 villages in Uttar Pradesh and Bihar.
UP contributes about 80-85% of the company’s top line presently, followed by Bihar, accounting for about 10-12%. According to Metafin Co-founder Sandeep Chopra, the firm will grow its footprints in five more states by the end of this year.
The company is exploring opportunities in geographies where there is potential for solar energy and is underserved currently, such as Chhattisgarh, Jharkhand, Odisha, and Madhya Pradesh.
According to Shah, the company reported profitable in FY24 and will continue to sustain its profitablity in FY25. Metafin has seen its revenue jump 4X year-on-year, Shah told YourStory. The startup is looking to triple its revenue over the next year with a goal to break even and remain profitable.
“This raise marks a pivotal moment in our journey to democratise clean energy access across Bharat,” said Chopra and Shah in a statement.
“We’ve proven that solar lending in rural India is not only impactful but also scalable and profitable. We’re thrilled to welcome Vertex as a partner in this mission as we deepen our presence, delight more customers, and move closer to our vision of empowering 1 million rural solar users by 2030.” Chopra and Shah added.
The funding round was led by Vertex Ventures Southeast Asia and India. The round, a mix of equity and debt, also saw participation from existing investors Prime Venture Partners and Varanium Capital, as well as financial institutions, including Northern Arc and AU Small Finance Bank.
