Climate Finance Startup Ecofy Set to Raise ₹380 Crore Led by British International Investment

India’s climate-focused finance ecosystem is attracting growing investor attention. Ecofy, a green-focused non-banking financial company (NBFC), is preparing to raise ₹380 crore (around $43 million) in a new funding round led by British International Investment, according to regulatory filings and media reports.

The proposed round will mark a significant capital infusion for the Mumbai-based company, which focuses exclusively on financing environmentally sustainable assets such as electric vehicles, rooftop solar installations, and energy-efficient projects for small businesses.

A Big Push for India’s Green Lending Ecosystem

Ecofy has positioned itself as one of India’s first “green-only” NBFCs, aiming to bridge the financing gap for individuals and businesses looking to adopt climate-friendly technologies.

As per filings sourced from the Registrar of Companies (RoC), the company plans to raise capital through a mix of equity shares and preference shares under its Series B funding round.

The investment will be led by British International Investment, which is expected to invest approximately ₹220 crore, while other investors will also participate in the round. These include Finnfund’s Digital Access Impact Fund, along with existing backers such as FMO and Green Growth Equity Fund (managed by Eversource Capital).

Once completed, the transaction is expected to value Ecofy at around ₹800 crore post-money, highlighting investor confidence in the fast-growing green finance sector.

Financing India’s Clean Energy Transition

Ecofy focuses on financing products that contribute to a lower-carbon economy. Its lending portfolio supports sectors such as:

• Electric vehicles (two-wheelers and three-wheelers)
• Rooftop solar installations
• Climate-friendly SME projects
• Energy-efficient consumer technologies

The company’s mission is to make sustainable technologies more accessible by offering quick, digital, and transparent financing solutions to individuals and businesses that want to adopt eco-friendly assets.

This approach also aligns with India’s broader climate goals, including accelerating EV adoption and expanding renewable energy infrastructure.

A Sector Attracting Global Capital

Investments in climate and sustainability-focused finance platforms are growing rapidly as investors look to support companies that enable the global transition to clean energy.

Development finance institutions like British International Investment are increasingly backing startups that can unlock climate finance for emerging markets, particularly in sectors such as mobility electrification, distributed solar energy, and sustainable infrastructure.

If the deal goes through as expected, Ecofy will gain the capital needed to scale its lending operations, expand its green asset financing portfolio, and reach more customers across India’s clean energy ecosystem.

Disclaimer

This article is based on publicly available media reports and regulatory filings. Kalpway does not independently verify financial or operational details mentioned in third-party reports. The information is provided for general informational purposes only and should not be considered financial or investment advice.