Ecofy Secures $15 Million for Climate Change Solutions

Ecofy, a non-banking financial company dedicated to climate change solutions, has successfully obtained $15 million in debt from Mirova. The Mumbai-based NBFC previously raised Rs 380.5 crore (around $42 million) in a Series B equity round, co-led by British International Investment and Finnfund in March this year. Additionally, in January 2024, they secured Rs 90 crore from FMO, the Dutch Entrepreneurial Development Bank.

Investments in Renewable Energy

The recent funds will be directed towards onward lending and will finance residential as well as commercial and industrial (C&I) rooftop solar installations. Furthermore, Ecofy aims to enhance electric mobility solutions throughout India, as stated in their press release.

Company Background and Objectives

Established in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy focuses on financing economically sustainable climate initiatives such as electric vehicles (EVs), rooftop solar systems, energy-efficient equipment, energy storage solutions, e-mobility, waste recycling, and water management, among other areas.

Rapid Growth and Performance

In just three years, Ecofy claims to have expanded its services to over 130,000 customers, boasting a presence across 26 states and over 500 cities in India. Financially, Ecofy has witnessed a revenue increase, with its operational revenue growing 4.8 times to Rs 93.3 crore in FY25, up from Rs 19.19 crore in FY24. However, it has also faced a 15.6% rise in losses, amounting to Rs 42.28 crore.

Commitment to Sustainability

Ecofy aspires to act as a catalyst in fostering the transition towards a net-zero carbon world. It collaborates with individuals and small businesses aiming to minimise their carbon footprints and contribute positively to environmental balance.

Assets and Partnerships

The company’s assets under management (AUM) have soared to over Rs 1,400 crore, supported by a 100% retail loan portfolio. Ecofy has established partnerships with over 100 original equipment manufacturers (OEMs) and more than 23 banks and financial institutions, ensuring strong asset quality and maintaining a capital adequacy ratio of approximately 50% after the recent fundraising.