Scaling Climate Finance in India
Mumbai-based climate-focused NBFC, Ecofy, has secured a $15 million debt facility from Mirova. This capital infusion follows a robust period of fundraising for the company, including a $42 million Series B equity round earlier this year.
Strategic Deployment of Capital
The new debt will be channeled toward expanding Ecofy’s retail loan book, specifically targeting:
- Residential and Commercial & Industrial (C&I) rooftop solar installations.
- Electric mobility solutions and EV financing.
- Broad support for sustainable equipment and energy storage.
Operational Momentum
Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy has rapidly scaled its operations to reach over 130,000 customers across 500+ Indian cities. The company has grown its Assets Under Management (AUM) to over Rs 1,400 crore. Financial highlights include a 4.8X revenue surge in FY25, reaching Rs 93.3 crore, despite a marginal increase in operational losses as the firm scales its lending infrastructure.
Investor Confidence and Market Context
The involvement of Mirova, alongside existing backing from British International Investment (BII), Finnfund, and FMO, underscores the growing institutional appetite for climate-aligned financial vehicles. Ecofy’s capital adequacy ratio remains strong at approximately 50%, providing a solid buffer for continued high-growth lending.
Founder Takeaway
Ecofy demonstrates that specialized NBFCs can unlock significant non-dilutive capital by proving traction in high-impact sectors like solar and EV. Founders in the climate space should focus on building robust OEM partnerships to de-risk their loan books and attract institutional debt partners.