Ecofy Finance Raises Rs 380 Crore for Climate Solutions
Ecofy Finance, a non-banking financial corporation dedicated to addressing climate change, is poised to secure Rs 380 crore (about $43 million) in its Series B equity round, led by British International Investment. The company’s board has authorised a special resolution to issue 20 equity shares and 38.05 crore Series B preference shares, each with a face value of Rs 10, aiming to raise Rs 380.5 crore, as indicated in its regulatory filings obtained from the Registrar of Companies (RoC).
British International Investment (BII) will take the lead in this funding round with an investment of Rs 220 crore, while Finnfund Digital Access Impact Fund is set to contribute Rs 70.5 crore. Existing investor FMO and promoter Green Growth Equity Fund (Eversource Capital) will add Rs 65 crore and Rs 25 crore, respectively. Post-funding, GGEF (Eversource Capital) and FMO will possess 49.59% and 16.23% stakes in Ecofy, while newcomers BII and Finnfund will hold 20.36% and 6.53%, respectively. As estimated by Startup Superb, the company’s valuation stands at approximately Rs 800 crore or $89 million after the allotment.
The documentation reveals that Ecofy aims to foster sustainable private sector growth in developing and emerging markets by investing in ventures, projects, and financial institutions. The newly raised funds will primarily be allocated to fulfil its working capital needs.
Ecofy is committed to financing economically sustainable climate initiatives, focusing on sectors such as electric vehicles (EVs), rooftop solar installations, energy-efficient machinery, energy storage solutions, e-mobility, waste recycling, and water management.
Earlier this year, Ecofy successfully secured Rs 90 crore in equity funding from FMO in January 2024, followed by approximately Rs 110 crore through a long-term loan facility from Denmark’s Investment Fund for Developing Countries (IFU) in March 2025.
On a financial note, Ecofy’s operational revenue saw a remarkable increase, soaring 4.8 times to Rs 93.3 crore in FY25, compared to Rs 19.19 crore in FY24. Meanwhile, its losses rose by 15.6% to Rs 42.28 crore.
As a pioneering entity in financing for solar and electric vehicles, Ecofy has effectively curated a portfolio that aligns with its investors’ standards for quality. The firm has gained valuable insights into the elements that can affect credit quality in this sphere. Furthermore, its robust distribution capabilities enhance its market positioning. With a clear trajectory for solar expansion and the electrification of transportation in India, competition has undoubtedly emerged; however, Ecofy is strategically positioned to leverage its experience as an early mover.