changeadminEcofy Finance, a non-banking finance company, has secured a $12.5 million long-term loan from Denmark’s Investment Fund for Developing Countries (IFU).
The Maharashtra-based startup provides EMI-based loans to finance electric 2-wheelers and 3-wheelers, and solar solutions like rooftop solar. Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy Finance is enabling green transition across 17 states.
This funding will help expand Ecofy’s loan portfolio for electric vehicles (EVs) and rooftop solar systems, with part of the funds directed towards supporting individuals and small to medium-sized enterprises (SMEs) who lack the financial means to adopt green solutions.
This financing is part of the green strategic partnership between India and Denmark, launched in 2020, which is focused on promoting sustainable development.
The green strategic partnership between India and Denmark is one of its kind. The European nation has implemented many initiatives in renewable energy, environment, circular economy, water & waste management, and air pollution. The collaboration between the two countries included areas like water management, water supply and distribution, wastewater treatment, sewerage systems, and re-use of treated wastewater.
The Indian electric mobility market is expected to expand significantly in the coming years, driven by government initiatives, technological advancements and better infrastructure.
Similarly, the rooftop solar market is also poised for accelerated growth, primarily driven by the benefits it offers and also through the Indian government’s flagship scheme, PM Surya Ghar: Muft Bijli Yojana, touted as the world’s largest domestic rooftop solar initiative.
The government solar rooftop scheme has already achieved 1 million installations in the country by the end of February 2025. Given the opportunities in the sector, many solar rooftop companies have emerged that offer convenience to customers.
However, the biggest challenge in both these cases is the financial ecosystem with traditional banks dictating the terms by asking for higher interest rates and complex lending rules.
Through simplified green financing, Ecofy provides targeted financial solutions that can drive inclusive growth while advancing India’s climate goals.
Ecofy aims to finance over 1 million EVs and more than 1.5 GW of rooftop solar capacity over the next seven years.
In December 2024, the company partnered with Federal Bank to offer financing solutions for MSMEs investing in commercial rooftop solar. The initiative aims to support the installation of 3,600 kW annually and reduce over 2,500 tonnes of carbon emissions each year.
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