Funding · Financial Services

Ecofy raises ₹380.5 Cr from BII to scale green lending

By Startup Enthusiast · 16 March 2026

What they do

Ecofy is a green non-banking financial company focused on retail-led financing for sustainable assets

The company closed a ₹380.5 crore round led by British International Investment with new money from Finnfund

This capital supports expansion as the solar financing sector is projected to grow significantly by 2033

Ecofy has closed an equity raise of ₹380.5 Cr ($42 Mn) in its latest funding round.
British International Investment (BII) served as the lead investor for this significant capital injection.
Finnfund Digital Access Impact Fund I participated as a new investor in this transaction.
Existing investors Eversource Capital and FMO also participated in the round to support growth.
The company plans to use these funds to scale credit offerings for sustainable assets and deepen its product range.
Distribution expansion is a key priority for Ecofy as it leverages this fresh capital base.
This raise follows previous debt and equity rounds that have helped build its current asset base.
The funding comes at a time when the broader solar financing market is showing strong growth potential.

The solar financing sector size is projected to reach $34.7 Bn by 2033, up from $12.4 Bn in 2025.
Ecofy operates as a Green NBFC backed by Eversource Capital, positioning it uniquely in the green finance space.
Its focus on retail-led green finance addresses a critical gap in accessible sustainable asset financing.
Strong institutional backing from international development finance institutions signals confidence in the model.

Ecofy operates as a retail-led green finance platform targeting individual consumers and small businesses.
It provides loans for rooftop solar installations, helping customers transition to renewable energy sources.
The platform offers financing for EVs including two and three-wheelers to promote electric mobility adoption.
Loans are available for energy efficient equipment to help users reduce long-term operational costs.
The company also engages in supply chain financing to support its ecosystem partners and vendors.
Loan amounts range from ₹1 Lakh to ₹1.5 Cr to cater to diverse customer needs.
Tenures for these loans span from six months to five years depending on the asset type.
The loan book is composed of 100 percent retail loans, indicating a strong consumer focus.
Ecofy serves over 120,000 customers across its network of partnerships and direct channels.

Ecofy aims to scale credit offerings for sustainable assets using the new capital.
The company plans to deepen its product offerings beyond current loan categories.
Expansion of distribution networks is a stated goal to reach more customers.

British International Investment (BII) (lead) — UK's development finance institution investing in emerging markets.
Finnfund Digital Access Impact Fund I (new investor) — Impact fund focusing on digital access and sustainable development.
Eversource Capital (existing investor) — Investment firm backing green finance initiatives.
FMO (existing investor) — Dutch development bank supporting private sector growth in developing countries.

Product: Financing solutions for electric vehicles, rooftop solar installations, energy-efficient equipment, and renewable energy initiatives
Customers: Small-medium enterprises (SMEs) and individuals seeking affordable financing for sustainable and clean energy assets
How it makes money: Non-banking financial company (NBFC) providing retail and commercial lending for climate-friendly assets with co-lending partnerships
What sets it apart: Specialized climate-focused lending with partnerships across 23+ banks and financial institutions, strong governance and purpose-driven culture