Ecofy secures $42 million funding co-led by BII, Finnfund
16 Mar 2026, 04:01 PMEversource Capital and FMO, a Dutch entrepreneurial development bank participated in the funding round.
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Green financing startup Ecofy has raised $42 million in a funding round co-led by British International Investment (BII) and Finnfund Digital Access Impact Fund I (DAIF), with participation from existing investor Eversource Capital and FMO, a Dutch entrepreneurial development bank.
The non-banking financial company (NBFC) will use the new investment to venture into rooftop solar, electric vehicles, and SME financing, it said in a statement.
The startup's capital adequacy ratio stands at around 50% after the fundraise.
Ecofy is a retail-focused green finance platform that partners with original equipment manufacturers (OEMs), banks and financial institutions to make sustainable asset categories such as rooftop solar panels, electric vehicles affordable for retail customers.
The company wants to solve the last-mile climate finance gap for the Indian consumer, transportation and small business sectors. It plans to finance over 1 million electric vehicles and more than 1.5 GW of rooftop solar within the next 5-6 years.
The Worli, Maharashtra-based company was founded in 2022 by banking and finance veterans Rajashree Nambiar and Govind Shankaranarayan in 2022, and currently holds assets under management (AUM) of over Rs 1,400 crore.
"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," said Nambiar, cofounder, MD and CEO, Ecofy.
The company had secured $12.5 million in long-term loan facility in March last year from the Investment Fund for Developing Countries (IFU), a development finance institution under the Government of Denmark.
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