Ecofy Raises ₹380 Crore to Power India’s Green Finance Revolution

How a Climate-Focused Fintech Is Unlocking the Future of Sustainable Lending

In the race toward a cleaner and more sustainable future, financing has emerged as one of the biggest challenges in adopting green technologies. Electric vehicles, rooftop solar systems, and energy-efficient infrastructure promise significant environmental benefits—but for many consumers and small businesses, the upfront costs remain a barrier.

This is where climate-focused fintech startups are stepping in to transform the financial ecosystem. Among them, Ecofy has rapidly emerged as a key player enabling the transition to sustainable technologies through innovative green financing solutions.

In March 2026, the Mumbai-based green NBFC announced a major milestone by raising ₹380.5 crore (approximately $42 million) in a Series B funding round. The round was co-led by global development finance institutions British International Investment (BII) and Finnfund, with participation from existing investors FMO and Eversource Capital’s Green Growth Equity Fund.

The investment signals growing global confidence in climate-focused financial platforms and positions Ecofy as one of the most promising green finance startups in India.

The Funding Round: Global Investors Back Ecofy’s Vision

Ecofy’s Series B round marks a significant step in its growth journey and highlights the increasing global push toward climate financing.

The ₹380.5 crore funding includes major contributions from international development finance institutions. British International Investment is investing approximately ₹220 crore, while Finnfund Digital Access Impact Fund is contributing around ₹70.5 crore. Existing investors FMO and Eversource Capital are also participating in the round.

Following the funding round, Ecofy’s valuation is estimated to reach around ₹800 crore (about $89 million).

The capital will be used to expand Ecofy’s lending operations across India, particularly in areas such as:

• Electric vehicle financing

• Rooftop solar installations

• Climate-focused SME loans

• Energy-efficient equipment financing

The company also plans to strengthen its balance sheet and scale partnerships with banks, financial institutions, and technology providers to expand its green lending ecosystem.

The Rise of Ecofy: A Mission to Finance Sustainability

Ecofy was founded by Rajashree Nambiar and Govind Sankaranarayanan with the vision of building a financial platform dedicated entirely to sustainability.

Unlike traditional lenders that operate across multiple industries, Ecofy focuses exclusively on financing environmentally sustainable assets.

Its platform provides loans to individuals, small businesses, and enterprises for:

• Electric two-wheelers and three-wheelers

• Commercial and industrial rooftop solar systems

• Energy-efficient equipment

• Energy storage systems

• Waste recycling infrastructure

• Water management solutions

By offering specialized financial products for these sectors, Ecofy helps accelerate the adoption of clean technologies while supporting India’s climate goals.

This focused approach has helped the company carve out a unique position in the green finance ecosystem.

Rapid Growth and Market Traction

Despite being a relatively young company, Ecofy has demonstrated impressive growth in a short time.

The company reports that it has already served over 1.2 lakh customers across its green lending portfolio.

Its assets under management (AUM) have crossed ₹1,400 crore, reflecting strong demand for climate-focused financing solutions in India.

Ecofy’s financial performance also highlights its rapid expansion. The company’s revenue from operations increased nearly 4.8 times, growing from ₹19.19 crore in FY24 to ₹93.3 crore in FY25.

This growth demonstrates the increasing demand for financing solutions tailored to electric mobility, renewable energy, and sustainable infrastructure.

However, like many fast-growing startups, Ecofy is still investing heavily in expansion and technology. As a result, the company has also reported rising losses as it scales operations and builds new distribution channels.

Despite these short-term challenges, investors remain optimistic about Ecofy’s long-term potential.

Building a Green Lending Ecosystem

One of Ecofy’s biggest strengths lies in its ecosystem-driven business model.

The company has built partnerships with more than 100 OEMs and over 23 banks and financial institutions, allowing it to offer financing directly at the point of purchase for green technologies.

This integrated model enables faster loan approvals and easier access to financing for customers purchasing sustainable assets.

For example, customers buying electric vehicles or installing rooftop solar systems can apply for loans directly through Ecofy’s digital platform, significantly reducing paperwork and processing time.

By embedding financing within the green technology supply chain, Ecofy is helping accelerate adoption across India’s emerging climate economy.

Why Investors Are Betting on Green Finance

Ecofy’s funding round reflects a broader global trend: the rapid growth of climate finance.

India has committed to achieving net-zero carbon emissions by 2070, and the country will require trillions of dollars in investment to meet this target.

Key sectors expected to drive this transition include:

• Renewable energy

• Electric mobility

• Energy efficiency

• Sustainable infrastructure

• Climate-resilient agriculture

However, access to financing remains one of the biggest barriers to large-scale adoption of these technologies.

This is where companies like Ecofy play a crucial role.

By providing affordable loans for sustainable technologies, the startup is helping bridge the financing gap and making green solutions accessible to millions of consumers and businesses.

The Road Ahead for Ecofy

With fresh capital and strong investor backing, Ecofy is entering its next phase of growth.

The company plans to scale its retail-focused green lending model, expand into new climate technology segments, and strengthen partnerships with financial institutions and clean-tech manufacturers.

As India’s demand for sustainable infrastructure continues to rise, Ecofy is positioning itself as a key financial enabler of the country’s green transition.

If the startup continues on its current trajectory, it could play a pivotal role in transforming how climate technologies are financed in emerging markets.

In a world where sustainability is becoming a business imperative, Ecofy’s mission is clear: make green technologies financially accessible, scalable, and impactful.

And with growing global support, the company may soon become one of India’s leading drivers of climate finance innovation.