Ecofy, a green non-banking financial company (NBFC) backed by Eversource Capital, has announced the successful closure of INR 380.5 crore (approximately USD 42 million) in fresh equity funding. The capital infusion marks a significant step in the company’s efforts to expand its presence in India’s rapidly growing retail green finance sector.
Global DFIs Join as New Investors
The funding round saw participation from two leading global development finance institutions. British International Investment (BII), the UK’s development finance institution and impact investor, and Finnfund Digital Access Impact Fund I (DAIF) managed by Finnfund, joined the round as new investors. Their participation highlights growing global investor confidence in Ecofy’s retail-focused green financing model. Existing investors including Eversource Capital and FMO, the Dutch entrepreneurial development bank, also continued their support in the latest funding round.
Strengthening the Balance Sheet for Rapid Expansion
The newly raised capital is expected to strengthen Ecofy’s balance sheet and support its expansion across key sustainable financing segments such as rooftop solar, electric vehicles, and SME financing. The company plans to leverage the funding to accelerate its lending capabilities, scale its operations, and further strengthen governance frameworks and operational infrastructure.
Building India’s Retail-Focused Green Finance Platform
Founded with a clear focus on enabling green finance adoption, Ecofy has rapidly emerged as one of India’s leading retail-oriented green NBFCs within a short span of three years. The company currently serves more than 1.2 lakh customers across various sustainable asset categories including rooftop solar installations, electric mobility solutions, and other green technologies.
Strong Growth in Assets Under Management
Ecofy has grown its assets under management (AUM) to over INR 1,400 crore, supported by a fully retail-focused loan book. The company has built an extensive ecosystem through partnerships with over 100 original equipment manufacturers (OEMs) and more than 23 banks and financial institutions, enabling wider access to green financing solutions. The latest funding round also strengthens Ecofy’s financial stability, with the company maintaining a capital adequacy ratio of around 50 percent following the investment.
Entering the Next Phase of Green Lending Growth
With strong institutional backing and a well-capitalized balance sheet, Ecofy is now entering its next phase of growth. The company plans to further scale high-quality retail green lending in collaboration with banks and financial institutions, supporting India’s broader transition toward sustainable energy adoption and environmentally responsible financing solutions.
Leadership Quotes
Rajashree Nambiar, Co-founder, Managing Director & CEO, Ecofy 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.”
Dhanpal Jhaveri, Vice Chairman, Everstone Group & CEO, Eversource Capital said, “Ecofy exemplifies Eversource’s strategy of building category-defining sustainable platforms in India. We are pleased to deepen our partnership with BII and FMO, and welcome Finnfund Digital Access Impact Fund I as Ecofy enters its next phase of growth. This capital raise positions Ecofy to scale profitably, while setting new benchmarks for retail green finance in India.”
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. We’re delighted to partner with Eversource, Finnfund and FMO to support Ecofy as it scales its impact nationwide.”
Aditya Mohan, Senior Investment Officer at FMO, the Dutch Entrepreneurial Development Bank also commented, “Accelerating the transition to sustainable energy systems largely depends on the availability of long-term, responsible capital at the retail level. Ecofy has consistently demonstrated strong fundamentals in building a specialised green finance platform with disciplined growth and sound governance. We are pleased to continue our support as the company expands its reach and deepens its contribution to India’s clean energy and climate finance ecosystem.”
Niklas Simola, Investment Manager at Finnfund stated, “We are eager to support along with Eversource, FMO and BII, Ecofy’s pivotal role in accelerating India’s green transition by making clean energy assets accessible for consumers and MSMEs through its digital lending platform. This investment supports Finnfund Digital Access Impact Fund I’s goals by delivering commercial returns alongside climate impact and promoting gender inclusion through equitable digital financial services.”
Tuomas Vaulanen, Investment Manager at Finnfund also commented, “Our investment in Ecofy reflects our view that India’s green finance sector is entering a disciplined, early‑growth phase where strong risk management will distinguish long‑term winners. Ecofy has demonstrated an ability to scale responsibly while navigating evolving NBFC regulations and aligning with national priorities such as renewable energy and electric mobility. As demand for climate‑positive financing accelerates, we see Ecofy as well‑positioned to bridge critical gaps in the market with the kind of underwriting rigor and sectoral insight that regulators increasingly expect.”
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