Ecofy raises Rs 380 Cr from BII and Finnfund

Ecofy, a NBFC focused on financing climate change solutions, has raised Rs 380.5 crore in funding. The investment comes from British International Investment (BII), the UK’s development finance institution and impact investor, and Finnfund Digital Access Impact Fund I (DAIF), managed by Finnfund, the Finnish development finance institution and impact investor.

This funding round also saw participation from existing investors Eversource Capital and FMO, the Dutch entrepreneurial development bank.

Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy will use this funding round to expand its financial portfolio across rooftop solar, electric vehicles, and SME financing.

Ecofy Co-founder, Managing Director & CEO Rajashree Nambiar said, “Ecofy was built on the belief that India’s green transition will be driven by everyday decisions made by small businesses, individual customers, and households. Over the last three years, we have created a technology-led, retail-focused green finance platform with strong unit economics, disciplined risk management, and scalable impact. This capital allows us to deepen our offerings, expand distribution, and continue building a high-quality green lending franchise, while delivering attractive, risk-adjusted returns.”

According to Ecofy, over the last three years, its assets under management (AUM) have grown to over Rs 1,400 crore, and it has partnerships with over 100 OEMs, along with more than 23 banks and financial institutions, serving over 1.2 lakh customers. The NBFC said the capital adequacy ratio will be approximately 50% following the fundraise.

Shilpa Kumar, Managing Director and Head of India at British International Investment stated, “Ecofy’s retail-focused green finance model is enabling households and small businesses across India to access affordable climate solutions, from e-mobility to rooftop solar and green loans. Our investment supports India’s clean energy transition and reinforces BII’s commitment to backing innovative platforms that drive sustainable growth and carbon reduction.”