Ecofy, a non-banking financial company backed by Eversource Capital, has raised ₹3.8 billion (~$41.1 million) in fresh equity capital to expand its retail-focused green finance operations in India.

The funding round saw participation from British International Investment and the Finnfund Digital Access Impact Fund I, managed by Finnish development financier and impact investor Finnfund, which joined as a new investor.

Existing investors, including Eversource Capital and FMO, also participated in the round, reinforcing continued institutional support for the company’s growth strategy.

The capital infusion is aimed at strengthening Ecofy’s balance sheet and enabling expansion across rooftop solar financing, electric-vehicle loans, and small- and medium-enterprise lending.

Ecofy said the funding will support scaling its retail-led model, supported by governance frameworks, risk management systems, and a technology-driven lending platform.

The company manages assets under management exceeding ₹14 billion (~$151.5 million), with a fully retail loan book. It has established partnerships with more than 100 original equipment manufacturers and over 23 banks and financial institutions to expand access to distribution and financing.

Following the latest fundraise, the company reported a capital adequacy ratio of approximately 50%, indicating a strengthened financial position to support future growth.

Representatives from Finnfund stated that the investment aligns with the fund’s objectives of supporting digital financial services that generate climate impact and promote inclusion.

Rajashree Nambiar, Co-founder, Managing Director, and CEO atEcofy, said the company’s model is built to enable households, individuals, and small businesses to participate in India’s green transition by providing access to financing for clean energy assets.

In 2024, Waaree Energies partnered with Ecofy, a non-banking financial company supported by Eversource Capital, to fund environmentally positive projects.

In the same year,  Ecofy secured an investment of ₹900 million (~$10.83 million) from FMO, a Dutch entrepreneurial development bank, to facilitate product diversification and support its expansion across India.