Ecofy, a Non-Banking Financial Company (NBFC) dedicated to supporting green projects, announced on Wednesday that it has successfully raised $10.8 million in funding from FMO, the Dutch Entrepreneurial Development Bank. The funds, split into two equal tranches, will be instrumental in expanding Ecofy’s loan book, promoting product diversification, and facilitating geographical expansion across India.
Key Highlights:
Funding for Growth:
- Ecofy intends to utilize the raised capital to bolster its loan portfolio, enabling the company to play a pivotal role in decarbonizing energy in the rapidly growing Indian economy. The funding also supports Ecofy’s vision of fostering a cleaner and more resilient future.
Green Partnerships:
- The NBFC has formed partnerships with various electric vehicle (EV) and cleantech companies in India to provide financing solutions. A notable collaboration with Montra Electric, the EV brand of Murugappa Group, focuses on facilitating accessible loans for three-wheelers and passenger vehicles.
Solar Financing Collaboration:
- Ecofy has teamed up with Tata Power Solar Systems to finance solar solutions, including solar rooftops and related products. The partnership aims to execute 1,500 installations across seven Indian states, contributing to the widespread adoption of renewable energy.
Positive Environmental Impact:
- Cornelis Van Aerssen, Manager at FMO’s private equity department, highlighted the collaboration’s dual impact on financial inclusion and environmental sustainability. Ecofy’s initiatives provide improved access to climate-friendly products for individuals and Small and Medium-sized Enterprises (SMEs) in India.
CEO’s Vision:
- Rajashree Nambiar, Co-founder, Managing Director, and CEO of Ecofy, expressed gratitude for the investment and emphasized the importance of the collaboration in achieving a cleaner and more resilient future. The funds will contribute to strengthening Ecofy’s financial position and advancing its mission.
As Ecofy secures substantial funding from FMO, the company is poised to further its commitment to green initiatives, making a significant contribution to the transition towards sustainable and eco-friendly practices in India.
