Ecofy raises $15M from Mirova to expand green financing portfolio

Ecofy, a climate-focused non-banking financial company (NBFC), has secured $15 million in funding from Mirova to scale its lending for rooftop solar and electric mobility solutions.

Mirova, an affiliate of Natixis Investment Managers, is backing the three-year-old startup as part of its broader strategy to finance energy transition projects in emerging markets. The investment marks Mirova’s fourth deal in India under this mandate.

Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy positions itself as India’s first green-only NBFC, focusing exclusively on financing sustainable assets. The company is backed by Eversource Capital, British International Investment, FMO, and Finnfund.

Ecofy said it will deploy the fresh capital towards onward lending for residential and commercial rooftop solar installations, as well as electric vehicles, including two- and three-wheelers. The company currently serves over 130,000 customers across 26 states and more than 500 cities.

“This partnership strengthens our ability to reach households and small businesses with accessible financing for rooftop solar and electric mobility,” said Vivek Khandelwal, head of treasury at Ecofy.

For Mirova, the investment aligns with its thematic focus on climate action, clean energy access, and inclusive economic growth. “Financing the energy transition in emerging markets requires platforms that combine scale, local reach, and measurable impact,” said Priyanka Mehrotra, investment director at Mirova.

The deal comes amid rising investor interest in India’s climate financing ecosystem, particularly in distributed renewable energy and electric mobility—segments seen as critical to the country’s decarbonisation goals. Ecofy’s model, which targets retail and small enterprise borrowers, reflects a growing shift toward decentralised financing solutions in the energy transition.

Ecofy is expected to deepen its footprint in underserved segments, positioning itself as a key intermediary between global climate capital and India’s end consumers. Ecofy’s latest fundraise comes as competition in climate-focused lending begins to sharpen, though not always from obvious rivals.

At the most direct level, a small but growing cohort of specialised financiers is targeting the same wedge. Startups such as Solfin and Three Wheels United are building focused loan books around rooftop solar and electric vehicles, mirroring Ecofy’s thesis of financing distributed energy assets for retail and small businesses.

These players, while still nascent, are betting on technology-led underwriting and partnerships with OEMs and installers to scale quickly in underpenetrated segments.

But the more formidable pressure may come from incumbents that do not market themselves as “green lenders.” Large NBFCs and banks such as Tata Capital and Mahindra Finance have begun expanding into EV and solar financing, leveraging lower cost of capital and established distribution networks.

Public-sector institutions like Indian Renewable Energy Development Agency and REC Limited, historically focused on utility-scale projects, are also increasingly relevant as they explore downstream opportunities or provide refinancing lines that shape pricing across the ecosystem.

A third layer of competition is emerging from within the solar value chain itself. Companies such as Tata Power Solar Systems and Waaree Energies are moving closer to the customer, often bundling financing with installation. This embedded finance model allows them to control customer acquisition at the point of sale—traditionally one of the most expensive parts of the lending cycle—and could, over time, reduce reliance on standalone NBFCs.