Ecofy secures $12.5M from Denmark’s IFU for EV and solar financing
The funds will help Ecofy expand 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 the next six to seven years.
Ecofy Finance Pvt., an Indian non-banking financial company (NBFC) focused on climate solutions, has secured a $12.5 million long-term loan facility from Denmark’s Investment Fund for Developing Countries (IFU).
The funds will help Ecofy expand 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 financing aims to bridge the “last-mile” climate funding gap for consumers, small businesses, and transport operators often excluded from traditional credit channels.
"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," said Vivek Khandelwal, Ecofy’s Treasury Head.
India’s EV market, particularly for two-and three-wheelers, is projected to grow at a compound annual rate of 49% through 2030, according to India Energy Storage Alliance (IESA). Meanwhile, rooftop solar installations are surging as households and SMEs seek to cut energy costs and emissions.
Green financing for underserved communities could help address financing bottlenecks in these sectors, which are critical to India’s goal of achieving 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.
Edited by Affirunisa Kankudti