India’s green financing ecosystem is attracting strong investor attention, and climate-focused NBFC Ecofy Finance is the latest example. The company is preparing to raise around Rs 380 crore (approximately $43 million) in a new funding round led by British International Investment (BII), a development finance institution backed by the UK government.
The upcoming Series B funding round is expected to help Ecofy expand its lending operations and strengthen its role in supporting sustainable and climate-friendly technologies across India. As the country pushes toward renewable energy and electric mobility, companies like Ecofy are emerging as key enablers of the green transition.
Major Investors Back Ecofy’s Growth
According to regulatory filings, Ecofy’s board has approved the issuance of equity shares and over 38 crore Series B preference shares to raise the planned capital.
The round will be led by British International Investment, which is expected to invest around Rs 220 crore. Other investors are also joining the round, including Finnfund Digital Access Impact Fund, which is likely to invest about Rs 70.5 crore.
Existing investors will continue to back the company’s growth. FMO, the Dutch entrepreneurial development bank, is expected to invest Rs 65 crore, while promoter Green Growth Equity Fund (managed by Eversource Capital) will contribute around Rs 25 crore.
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After the funding round, Ecofy’s valuation is estimated to reach around Rs 800 crore, highlighting rising investor confidence in India’s green finance sector.
Driving India’s Green Financing Mission
Ecofy focuses on providing financing for environmentally sustainable technologies. Its lending portfolio supports sectors such as electric vehicles, rooftop solar systems, energy-efficient equipment, battery storage, waste management, and water sustainability solutions.
The fresh capital will help the company expand its lending capabilities and reach more businesses and consumers looking to adopt sustainable technologies.
Financially, Ecofy has already demonstrated strong growth. The company’s revenue surged to Rs 93.3 crore in FY25 from Rs 19.19 crore in FY24, reflecting rising demand for green financing solutions. However, as the company continues to invest in expansion and technology, losses widened to Rs 42.28 crore during the same period.
With increasing global focus on climate finance and India’s aggressive renewable energy targets, Ecofy is positioning itself as a key financial partner in the country’s transition toward a more sustainable and low-carbon economy.