Total amount raised
₹900 Million
Latest funding date
1/1/2024
Location
Ecofy has successfully raised funding through two rounds, both of which were debt financing, with the support of investors IFU and FMO. The company focuses on providing financial solutions for eco-friendly initiatives, including loans for electric vehicles and rooftop solar installations.
Keep reading to explore the intricacies of Ecofy's fundraising journey and the investors backing this green-focused financial platform.
What Is Ecofy?
Ecofy Finance Private Limited, based in Mumbai, Maharashtra, India, is a Non-Banking Financial Company (NBFC) dedicated to providing financial solutions for eco-friendly initiatives. The company offers loans for electric vehicles, rooftop solar installations, and energy efficiency projects for SMEs.
Founded by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy employs between 501 and 1000 people. The company is committed to supporting green choices and promoting sustainable practices through its financial services.
How Much Funding Has Ecofy Raised?
- Debt Financing
- Amount Raised: USD 12,500,000
- Date: March 2025
- Lead Investors: IFU
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the expansion of Ecofy's loan portfolio and enhance its credit rating.
- Debt Financing
- Amount Raised: USD 11,000,000
- Date: January 2024
- Lead Investors: FMO
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To grow Ecofy's loan book, diversify product offerings, and support nationwide expansion.
Total amount raised: USD 23,500,000. Current valuation: Not publicly disclosed.
Key Investors
- IFU (Investment Fund for Developing Countries)
- Details: IFU is a Danish investment fund that provides risk capital to companies operating in developing countries. It aims to promote economic and social development in these regions.
- Investment Focus Areas: Renewable Energy, Agribusiness, Infrastructure
- Notable Investments: Renewable energy projects in Africa, Agribusiness ventures in Asia, Infrastructure development projects in Latin America
- FMO (Dutch Development Bank)
- Details: FMO is a Dutch development bank that supports sustainable private sector growth in developing countries. It provides financing and investment solutions to businesses and projects that contribute to economic development and improve people's lives.
- Investment Focus Areas: Renewable Energy, Financial Institutions, Agribusiness
- Notable Investments: Solar energy projects in Africa, Funding for microfinance institutions in Asia, Sustainable agriculture projects in Latin America
- Eversource Capital
- Details: Eversource Capital is a joint venture between Everstone Group and Lightsource BP, focusing on green infrastructure and renewable energy investments. The firm aims to promote sustainable development by investing in projects that reduce carbon footprints and support environmental sustainability.
- Investment Focus Areas: Green Infrastructure, Renewable Energy, Environmental Sustainability
- Notable Investments: Renewable energy platforms, Energy efficiency projects, E-mobility initiatives
What's Next for Ecofy?
Ecofy stands at the cusp of significant growth opportunities, driven by its recent Rs 90 crore funding from FMO. The company is poised to expand its loan portfolio, diversify its product offerings, and enhance its credit rating. This funding will enable Ecofy to support electric vehicles, rooftop solar projects, and small-medium enterprises, aligning with the increasing focus on climate finance and sustainable investments.
Future fundraising opportunities appear promising as Ecofy continues to attract climate-focused investors. The company may seek additional investments to support nationwide expansion and product diversification. However, challenges such as maintaining credit ratings, managing risks associated with lending, and navigating regulatory changes could pose hurdles. Despite these challenges, Ecofy's commitment to green finance positions it well for continued growth and impact in the sustainable finance sector.
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