Finnfund Digital Access Impact Fund I invests in Ecofy to accelerate India’s retail green finance market

Ecofy, a pioneering green NBFC backed by Eversource Capital, today announced the successful closure of 42 million US dollars in fresh equity capital.

The funding round saw participation from British International Investment (BII), the UK’s development finance institution, and Finnfund Digital Access Impact Fund I (DAIF) managed by Finnfund, the Finnish development finance institution and impact investor, who joined as new investors. The investment reflects growing global investor confidence in Ecofy’s differentiated, retail-led model. The round also saw continued commitment from existing investors Eversource Capital, a leading sustainable infrastructure investor and FMO, the Dutch entrepreneurial development bank.

The growth capital will assist Ecofy’s expansion across rooftop solar, electric vehicles, and SME financing, underpinned by a strengthened balance sheet, experienced leadership, robust governance frameworks, and a high-performance, purpose-driven operating culture.

Founded with a singular focus on green finance, Ecofy has, in just three years, built India’s leading retail-focused green finance platform serving over 1,20,000 customers across rooftop solar, electric vehicles, and other sustainable asset categories. The company has partnerships with more than 100 OEMs and more than 23 banks and financial institutions.

Rajashree Nambiar, Co-founder, Managing Director & CEO, Ecofy, said “Ecofy was built on the belief that India’s green transition will be driven by everyday decisions made by small businesses, individual customers, and households. 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.”

Dhanpal Jhaveri, Vice Chairman, Everstone Group & CEO, Eversource Capital, said “Ecofy exemplifies Eversource’s strategy of building category-defining sustainable platforms in India. We are pleased to deepen our partnership with BII and FMO, and welcome Finnfund Digital Access Impact Fund I as Ecofy enters its next phase of growth. This capital raise positions Ecofy to scale profitably, while setting new benchmarks for retail green finance in India.”

Niklas Simola, Investment Manager at Finnfund, stated, “ We are eager to support along with Eversource, FMO and BII, Ecofy’s pivotal role in accelerating India’s green transition by making clean energy assets accessible for consumers and MSMEs through its digital lending platform. This investment supports Finnfund Digital Access Impact Fund I’s goals by delivering commercial returns alongside climate impact and promoting gender inclusion through equitable digital financial services.”

Tuomas Vaulanen, Investment Manager at Finnfund, also commented, “Our investment in Ecofy reflects our view that India’s green finance sector is entering a disciplined, early‑growth phase where strong risk management will distinguish long‑term winners. Ecofy has demonstrated an ability to scale responsibly through its digital platform while navigating evolving NBFC regulations and aligning with national priorities such as renewable energy and electric mobility.”

Shilpa Kumar, Managing Director and Head of India at British International Investment stated “Ecofy’s retail-focused green finance model is enabling households and small businesses across India to access affordable climate solutions, from e-mobility to rooftop solar and green loans. Our investment supports India’s clean energy transition and reinforces BII’s commitment to backing innovative platforms that drive sustainable growth and carbon reduction. We’re delighted to partner with Eversource, DAIF and FMO to support Ecofy as it scales its impact nationwide.”

Aditya Mohan, Senior Investment Officer at FMO, the Dutch Entrepreneurial Development Bank also commented, “Accelerating the transition to sustainable energy systems largely depends on the availability of long-term, responsible capital at the retail level. Ecofy has consistently demonstrated strong fundamentals in building a specialised green finance platform with disciplined growth and sound governance. We are pleased to continue our support as the company expands its reach and deepens its contribution to India’s clean energy and climate finance ecosystem.”

More information:
Niklas Simola, Investment Manager, niklas.simola@finnfund.fi, tel. +358 400 504 360
Tuomas Vaulanen, Investment Manager, tuomas.vaulanen@finnfund.fi, tel. +358 405 936 035

Media contact:
Valpuri Mäkinen, Senior Communications and Marketing Manager, valpuri.makinen@finnfund.fi, tel. +358 50 384 2105

About Ecofy
Backed by Eversource Capital, Ecofy’s vision is to be a catalyst in accelerating the transition towards a net zero-carbon world. It partners with individuals and small businesses who want to reduce their carbon footprint and restore balance to the planet. Ecofy offers loans for Electric Vehicles (Two & Three wheelers), rooftop solar, and small-medium enterprises providing E2E digital experience.

About Finnfund Digital Access Impact Fund I LP
Finnfund Digital Access Impact Fund I LP is an equity fund focused on digital infrastructure and solutions in emerging and frontier markets. The investments are targeted towards the regions and digital subsectors with the most attractive risk-return potential while focusing on creating positive social impact. In addition to financial return, the Fund aims to increase digital, financial, and gender inclusion with its investments. The Fund’s general partner is Finnfund GP Ltd. The Fund voluntarily aims to meet the criteria for the Dark Green Funds according to the Article 9 of the European Sustainable Finance Disclosure Regulation (SFDR).