Ecofy is a Mumbai-based green financing NBFC that lends for rooftop solar, electric vehicles, and sustainability-linked SME use cases. Its latest Ecofy funding round brings in ₹380.5 crore in fresh equity from British International Investment, Finnfund, FMO, and Eversource Capital. The gap it’s chasing is obvious: clean assets are spreading fast, but affordable last-mile credit still doesn’t reach enough buyers. Founded in 2023 by Rajashree Nambiar and Govind Sankaranarayanan, the company now wants to use the new capital to scale lending around sustainable assets.
What is Ecofy and how do its green loans work?
Ecofy is a retail-focused NBFC built only for green assets. In practice, that means it finances electric 2-wheelers and 3-wheelers, residential and commercial rooftop solar systems, and energy-efficient equipment. It also covers some SME and supply-chain needs tied to cleaner operations. Loan sizes run from ₹1 lakh to ₹1.5 crore, with tenures ranging from 6 months to 5 years.
The customer journey is more embedded than a typical old-school loan file. A borrower can come in through an EV dealer, an OEM partner, or a solar installer. They submit documents digitally, go through underwriting, and get to disbursal without the usual back-and-forth that slows down specialty financing. Ecofy has also rolled out a customer portal so borrowers can see loan documents and make EMI or overdue payments in real time.
And the product set is a bit broader than the headline categories suggest. Ecofy has pushed beyond straight vehicle loans into leasing structures and assured buyback options. It also offers niche green-credit products such as Battery-as-a-Service financing. That matters because clean-asset buyers often don’t want one generic EMI product. They want financing that matches resale value, battery risk, or subsidy timing.
Before players like this, a lot of buyers were stuck piecing together loans from generalist banks or local financiers who didn’t really understand EV depreciation curves, rooftop solar cash flows, or small-ticket climate assets. Ecofy’s whole pitch is that the underwriting model starts with those assets instead of treating them like awkward exceptions. That’s a smarter approach. But it also means the company has to get risk right every single time.
Who founded Ecofy and what is the company building?
How Ecofy started
Ecofy was founded in 2023 by Rajashree Nambiar and Govind Sankaranarayanan. Their basic thesis was that climate capital existed at the institutional level, but it wasn’t reaching the end borrower who actually wanted to buy an EV, install rooftop solar, or finance a greener small business. So they built a tech-led NBFC around that missing last mile.
Why the founders fit this market
Nambiar came into Ecofy with deep retail-lending chops. Before this, she was MD and CEO at Fullerton India Credit, and earlier CEO and executive director at IIFL Finance. There, she worked on retail diversification across housing, commercial vehicles, gold loans, and SME credit. Before that, she spent 22 years at Standard Chartered and ended up as head of retail products for India and South Asia. She has an MBA from JBIMS.
Govind’s résumé is just as relevant, but in a different way. He spent 27 years in the Tata group and, for 11 of those, served as group COO and CFO at Tata Capital. He helped scale the business to about ₹7,000 crore in revenue and ₹65,000 crore in AUM. Earlier, he was global CFO at Tata Communications and has also sat on finance and policy committees linked to the RBI, Ministry of Finance, CII, and other industry bodies. He studied chemical engineering at BITS Pilani, holds an MBA from IIM Bangalore, and a master’s in finance from London Business School.
That mix matters. Nambiar understands granular retail credit and digital lending execution. Govind understands balance sheets and fundraising. He also knows policy and how to build an institution in a regulated sector. For a green finance NBFC, that’s a strong pairing.
Traction and early signals
Ecofy is already live and operating at scale, not sitting in pilot mode. It has served 1.25 lakh customers so far and built assets under management of ₹1,400 crore. The company has also tied up with more than 23 banks and financial institutions for co-lending. It also works with over 100 OEMs. Earlier partnerships with Ather Energy and Motovolt Mobility show how its distribution model leans on point-of-sale access rather than waiting for borrowers to discover the brand on their own.
Its financials tell a more mixed story. Operating revenue in FY25 rose nearly 3x to ₹102.9 crore from ₹34.9 crore a year earlier. But net loss also widened 16% to ₹42.3 crore from ₹36.6 crore.
Who backed the round and where the money goes
The new round brings in ₹380.5 crore, or about $42 million, in equity. British International Investment and Finnfund led the investment. Existing backers FMO and Eversource Capital also joined. Ecofy plans to use the money to scale credit products around sustainable assets, especially rooftop solar, EVs, and SMEs.
That comes after a separate $12.5 million debt raise from Denmark’s IFU. Before the current round, Ecofy had raised close to $11 million in equity. Nambiar summed up the company’s case like this: “Over the last three years, we have created a technology-led, retail-focused green finance platform with strong unit economics, disciplined risk management, and scalable impact. This capital allows us to deepen our offerings, expand distribution, and continue building a high-quality green lending franchise, while delivering attractive, risk-adjusted returns.”
How Ecofy funding stacks up against rivals
This isn’t a winner-take-all category. Ecofy sits in a crowded but still underbuilt market with adjacent specialists all around it. Aerem is more solar-first and combines financing with installer workflows; it raised $15 million in 2025. Revfin has gone hard at EV financing, especially commercial and underserved borrower segments. It raised $14 million in a Series B round in late 2023. Mufin Green Finance is a listed NBFC with a stronger legacy footprint in EV and solar financing and recently lined up about $12 million from Finnfund.
So where does Ecofy stand out? It isn’t just an EV lender. And it isn’t just solar fintech. It’s trying to be a pure-play green retail lender across multiple asset classes. Its co-lending relationships let it originate more while sharing risk and funding costs with larger institutions. Against legacy alternatives — banks, generalist NBFCs, and captive OEM finance desks — that specialization is the differentiator.
Why does this Ecofy funding round matter?
For Ecofy itself, the timing is pretty straightforward. Lending businesses need equity support before they can safely grow the book. If you’re financing new asset classes that still make a lot of conventional lenders nervous, that capital cushion matters even more.
The round also gives Ecofy breathing room to expand without pretending profitability is already solved. Revenue is growing fast, yes. Losses are too. Fresh equity lets management keep building distribution and product depth while the portfolio matures.
There’s another signal here. BII and Finnfund aren’t casual tourists in climate finance. When development finance institutions back a young NBFC, they’re usually betting on two things at once: commercial scalability and measurable transition impact. For Ecofy’s customers, that should mean more credit availability for rooftop solar installations, EV purchases, and SME upgrades that might otherwise get delayed or rejected.
What is driving green financing demand in India?
The macro case is getting harder to ignore. In the source market data tied to this story, India’s solar financing opportunity alone is projected to grow from $12.4 billion in 2025 to $34.7 billion by 2033. That creates room for specialist lenders instead of forcing them to fight over scraps.
EV adoption is adding another tailwind. India remained the world’s largest electric 3-wheeler market in 2024, with sales of roughly 7 lakh units, while electric car sales came close to 1 lakh. At the same time, policy support has been shifting from pure subsidy-led acceleration toward a more normalised financing and infrastructure build-out after the FAME II scheme ended on March 31, 2024. In plain English: financing is becoming a bigger part of the EV story, not a side note.
Capital markets are moving too. India’s sustainable debt market had reached $55.9 billion cumulatively by December 2024, and loans made up 39% of the green segment. That doesn’t guarantee success for any single lender. But it does show that green credit is turning into a real asset class rather than a niche ESG talking point.
Ecofy funding matters because it lands right where those shifts meet: retail demand for cleaner assets, institutional appetite for climate-linked credit, and a financing gap that generalist lenders still haven’t fully closed.
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FAQ
What is the latest Ecofy funding round?
Ecofy has raised ₹380.5 crore in fresh equity, or about $42 million. British International Investment and Finnfund led the round, and existing investors FMO and Eversource Capital also participated. The company plans to use the money to expand lending for rooftop solar, EVs, and green SME use cases.
How does Ecofy’s green loan platform work?
Ecofy works as a specialist NBFC for sustainable assets, so borrowers usually enter through dealers, OEMs, or solar partners rather than a generic loan branch. It underwrites digitally and offers structured products for EV and rooftop solar purchases. It also runs a customer portal for loan documents and EMI payments.
Who founded Ecofy and what did they do before this?
Ecofy was founded in 2023 by Rajashree Nambiar and Govind Sankaranarayanan. Nambiar previously led Fullerton India Credit and IIFL Finance after a long run at Standard Chartered, while Govind spent 27 years in the Tata group and helped build Tata Capital as group COO and CFO.
Why is green financing becoming a bigger NBFC category in India?
Because the assets are scaling faster than traditional credit processes can adapt. India’s electric 3-wheeler market stayed the world’s biggest in 2024, and the country’s sustainable debt market had already crossed $55.9 billion by the end of that year. That means there’s both borrower demand and capital looking for credible green-lending channels.
