Climate-focussed NBFC Ecofy raises $10.8M to grow its loan book
Backed by Eversource Capital, Ecofy offers loans to climate change-related businesses and individuals, such as for EVs, rooftop solar panels, and SMEs, among others.
Ecofy, an NBFC that focuses on supporting green projects, said on Wednesday it has raised $10.8 million from FMO, a Dutch Entrepreneurial development bank.
The investment, divided into two equal tranches, will be used by the company to grow its loan book, facilitate product diversification, and expand across the country, the company said.
"The investment aims to play a critical role in decarbonising energy, particularly in a rapidly growing economy like India. This collaboration not only strengthens our financial standing but also affirms our vision for a cleaner and more resilient future," said Rajashree Nambiar, Co-founder, managing director, and CEO ofin a press release.
The company has partnered with several EV and cleantech companies in India to offer financing solutions. Most recently, it partnered with Montra Electric, the EV brand of Murugappa Group, to make accessing loans for three-wheelers and passenger vehicles easier.
It has also tied up with Tata Power Solar Systems to finance solar solutions such as solar rooftops and other products. The collaboration targetted 1,500 installations in seven Indian states, including Maharashtra, Gujarat, Madhya Pradesh, Karnataka, and others.
"The collaboration with Ecofy gives us the chance to support improved access to climate-friendly products to individuals and SMEs in India," said Cornelis Van Aerssen, Manager at FMO’s private equity department.
" We are especially enthused by the convergence of impact in terms of financial inclusion and positive environmental impact," Aerssen added.