India’s sustainable finance ecosystem continues to attract global investors, and climate-focused NBFC Ecofy is the latest example of that momentum. The company, founded by Rajashree Nambiar and Govind Sankaranarayanan, is preparing to raise ₹380.5 crore in a fresh Series B equity round, a move that could significantly strengthen its lending capabilities in India’s fast-growing clean energy and green technology sectors.
According to regulatory filings, the funding round will be led by British International Investment (BII) with participation from Finnfund Digital Access, existing investor FMO, and promoter Green Growth Equity Fund (GGEF), which is backed by Eversource Capital. The investment signals growing confidence among global development finance institutions in companies that are building businesses around climate-aligned financing.
Credits: Ascendants
Details of the Fundraising Plan
Ecofy’s board has approved a special resolution to issue 20 equity shares and 38.05 crore Series B compulsorily convertible preference shares, each with a face value of ₹10. This brings the total proposed fundraising amount to ₹380.5 crore.
Among the investors, BII is expected to contribute the largest portion with ₹220 crore. Finnfund Digital Access will invest ₹70.5 crore, while existing investor FMO is set to infuse ₹65 crore. Promoter Green Growth Equity Fund will add another ₹25 crore to the round.
Once the allotment is completed, the shareholding structure will reflect the strong backing from these institutions. GGEF is expected to hold 49.59%, followed by FMO with 16.23%. New investors BII and Finnfund will own 20.36% and 6.53% stakes respectively. Following the transaction, Ecofy’s valuation is estimated at around ₹800 crore (approximately $89 million).
Capital to Strengthen Lending Operations
The company plans to use the newly raised funds primarily for working capital requirements. While this may appear routine, for a lending platform operating in emerging climate sectors, access to working capital is crucial for scaling loan disbursements and expanding its asset portfolio.
Ecofy focuses on providing financing for areas such as electric vehicles, rooftop solar systems, energy-efficient appliances, energy storage solutions, e-mobility infrastructure, and waste recycling projects. These sectors are experiencing rapid growth as India pushes toward decarbonisation and energy transition goals.
A larger capital base will allow Ecofy to originate more loans and build deeper relationships with businesses and consumers investing in climate-friendly technologies.
Building Momentum Through Strategic Funding
This Series B round is part of Ecofy’s broader capital-raising journey over the past few years. In January 2024, the company secured ₹90 crore in equity funding from FMO, strengthening its early growth phase. Later, in March 2025, Ecofy obtained a ₹110 crore long-term debt facility from Denmark’s Investment Fund for Developing Countries (IFU).
The upcoming funding round represents another major milestone in Ecofy’s growth strategy, giving the company additional financial firepower to expand its operations and deepen its presence in climate-linked financing.
Rapid Growth, But Profitability Still Distant
Ecofy’s financial performance reflects the typical growth pattern of emerging lending platforms focused on new sectors. The company has been expanding rapidly, although profitability remains a work in progress.
Revenue from operations surged 4.8 times to ₹93.3 crore in FY25, indicating strong demand for its lending products. However, as the company continued investing in growth and expanding its portfolio, losses widened by 15.6% to ₹42.28 crore during the same period.
Such financial trends are common in new-age lending businesses that prioritise market expansion and portfolio growth before achieving sustainable profitability.
Riding India’s Clean Energy Momentum
What differentiates Ecofy from many other NBFCs is its exclusive focus on climate finance. The company has built its business around financing environmentally sustainable initiatives, including solar energy systems, electric mobility, energy-efficient technologies and waste management solutions.
These sectors are gaining momentum as India pushes toward net-zero ambitions and electrification of transportation, creating a large opportunity for specialised lenders that understand the risks and dynamics of climate-focused assets.
Ecofy’s early entry into segments like EV financing and rooftop solar has helped it develop sector expertise and build a portfolio in emerging green technologies.
Credits: Bharat Fast
A Strategic Bet on the Future of Green Finance
For Ecofy, the planned Series B funding is more than just another capital infusion—it reflects growing global confidence in India’s climate-finance ecosystem. Development finance institutions and sustainability-focused investors are increasingly backing companies that enable the transition to cleaner energy and more efficient infrastructure.
While Ecofy still needs to demonstrate long-term profitability, the combination of strong investor backing, rising demand for green financing, and a focused lending strategy could position the company for sustained growth.
With fresh capital, a diversified investor base, and a clear climate-focused mission, Ecofy now appears ready to enter its next phase—one that could see it play a bigger role in financing India’s transition to a more sustainable future.
