Ecofy secures $12.5 million to enhance EV, solar adoption
Ecofy plans to finance over 1 million electric vehicles and more than 1.5 GW of rooftop solar in India within the next 6-7 years.
Ecofy Finance Private Limited, an Indian green-transition-focused non-banking financial company (NBFC), has secured a USD 12.5 million long-term loan facility from Denmark’s Investment Fund for Developing Countries (IFU).
Ecofy aims to address the critical last-mile climate finance gap in India’s consumer, transportation and small business sectors. The NBFC plans to finance over 1 million electric vehicles and more than 1.5 GW of rooftop solar within the next 6-7 years, Ecofy said in a media release.
A part of the financing provided by IFU would be directed towards individuals and SMEs, who typically find traditional financing channels less accessible.
“This investment is a pivotal moment for both, Ecofy and the green finance ecosystem in India. The long-term capital provided by IFU empowers us to scale our climate-focused lending solutions while breaking down barriers for underserved borrowers,” said Vivek Khandelwal, Treasury Head at Ecofy. “By combining innovative financing models with a strong commitment to sustainability, we aim to enable access to electric vehicles and rooftop solar, and to drive systemic change toward a cleaner, more inclusive economy.”
“IFU is very pleased to support Ecofy in its pursuit to provide accessible climate finance to the masses,” said Vibhor Singhal, Investment Manager at IFU. “This investment aligns well with IFU’s strategy, as India is a core focus country and climate mitigation and access to finance are key impact priorities for IFU.”
The financing from IFU, structured as long-term debt capital, is part of the green strategic partnership between India and Denmark, which was established in 2020.
Axis Bank acted as the exclusive financial advisor to Ecofy for the transaction.
