Global Investors Back Ecofy to Expand Green Lending

Epil Bodra

| March 9 | Funding Feed, The Ascendants

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Climate-focused non-banking finance company Ecofy, founded by Rajashree Nambiar and Govind Sankaranarayanan is set to raise Rs 380.5 crore in a fresh Series B equity round, a move that could strengthen its position in India’s fast-expanding clean energy and sustainable finance market. According to regulatory filings, the round is being led by British International Investment (BII), with participation from Finnfund Digital Access, existing investor FMO, and promoter Green Growth Equity Fund, backed by Eversource Capital.

The proposed fundraising comes at a time when financing for electric vehicles, rooftop solar, energy-efficient equipment, energy storage, e-mobility and waste recycling is drawing greater attention from investors as well as lenders. Ecofy, which has been building its business around climate-linked lending, appears to be positioning itself to deepen that presence with a larger capital base.

Ecofy Plans ₹380.5 Cr Series B to Scale Green Lending

As per the filings, Ecofy’s board has passed a special resolution to issue 20 equity shares and 38.05 crore Series B compulsorily convertible preference shares at a face value of Rs 10 each, taking the total size of the raise to Rs 380.5 crore. Of this, BII is expected to invest Rs 220 crore, while Finnfund Digital Access will put in Rs 70.5 crore. Existing backer FMO will contribute Rs 65 crore and promoter Green Growth Equity Fund will invest Rs 25 crore.

Once the allotment is completed, the shareholding structure is expected to reflect the scale of that backing. GGEF (Eversource Capital) and FMO will hold 49.59% and 16.23% stakes respectively, while new investors BII and Finnfund will own 20.36% and 6.53%. Ecofy’s post-allotment valuation is pegged at around Rs 800 crore, or about $89 million.

The fresh capital is slated to be used for working capital requirements, according to the filings. That may look like a routine use of funds on paper, but for a lending platform operating in sectors such as solar and electric mobility, working capital is often the backbone that determines how quickly it can scale originations and build a larger asset base.

Ecofy has already been on a capital-raising path over the past two years. The company had raised Rs 90 crore in equity funding in January 2024 from FMO, followed by a Rs 110 crore long-term debt facility from Denmark’s Investment Fund for Developing Countries (IFU) in March 2025. The latest round, if closed as planned, would mark another significant step in that trajectory.

Its financial performance suggests the company has been growing rapidly, though profitability remains some distance away. Revenue from operations rose 4.8 times to Rs 93.3 crore in FY25 from FY24. At the same time, losses widened 15.6% to Rs 42.28 crore. The numbers underline a familiar pattern in climate-finance and new-age lending businesses: sharp growth in operations, coupled with continued pressure on the bottom line as companies invest for scale.

What stands out in Ecofy’s case is the sector it has chosen to specialise in. The company is focused on financing economically sustainable climate initiatives, including EVs, solar systems, energy-efficient equipment, energy storage, e-mobility, waste recycling and related areas. That gives it exposure to segments where demand is expanding, but where underwriting and portfolio quality can also become decisive over time.

Ecofy’s early move into solar and EV financing has helped it build a portfolio in these categories, backed by investors who appear to be comfortable with the quality of its assets. It also points to the value of learning gathered around credit issues that can affect this segment. In a market where more players are entering climate-linked lending, that experience could matter as much as capital.

For Ecofy, then, this is not just another funding announcement. It signals that global and development-focused investors continue to see long-term potential in businesses aligned with India’s electrification and clean energy push. The company still has to prove that growth can eventually translate into stronger profitability. But with new capital, a wider investor base and a clear thematic focus, Ecofy appears to be entering its next phase with stronger financial support behind it.

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