Ecofy Raises Rs 380.5 Crore for Climate Change Solutions

Ecofy, a non-banking financial firm dedicated to solutions addressing climate change, has successfully raised Rs 380.5 crore (roughly $42 million) in a Series B equity fund round. British International Investment and Finnfund co-led this funding round, with contributions from current investors Eversource Capital and FMO. This information was initially reported exclusively by Startup Superb a week prior.

Previous Funding Rounds

The company had previously secured Rs 90 crore in equity investment in January 2024, sourced from FMO, and later accessed approximately Rs 110 crore through a long-term loan facility from Denmark’s Investment Fund for Developing Countries (IFU) in March 2025.

Use of New Funds

The new capital will be directed towards scaling operations in rooftop solar, electric vehicles, and financing for small and medium-sized enterprises (SMEs). Ecofy stated that this initiative is supported by a reinforced balance sheet, experienced leadership, solid governance frameworks, and a dynamic, purpose-driven operating culture.

About Ecofy

Established in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy is committed to financing sustainable climate initiatives. These initiatives encompass electric vehicles (EVs), rooftop solar installations, energy-efficient devices, energy storage solutions, e-mobility, waste recycling, and water management.

Mission and Goals

Ecofy’s mission is to catalyse the transition towards a net-zero carbon world. The firm collaborates with individuals and small enterprises aiming to decrease their carbon footprint and contribute to restoring ecological balance.

Next Phase of Growth

The company is set to enter a new growth phase by enhancing high-quality retail green lending partnerships with banks and financial institutions.

Financial Performance

On the financial side, Ecofy’s operational revenue skyrocketed by 4.8 times to Rs 93.3 crore in FY25, up from Rs 19.19 crore in FY24. However, losses also grew by 15.6% to Rs 42.28 crore.

Customer Base and Management

Over the last three years, Ecofy claims to have provided services to more than 120,000 customers, spanning rooftops solar, electric vehicles, and additional sustainable asset categories. The company has expanded its assets under management (AUM) to exceed Rs 1,400 crore, underpinned by a 100% retail loan portfolio, collaborations with over 100 OEMs, and partnerships with more than 23 banks and financial institutions. Additionally, Ecofy boasts strong asset quality and a capital adequacy ratio of roughly 50% following this recent fundraising.