The funding is intended to fuel Ecofy’s loan book growth, facilitate product diversification, and support pan-India expansion
Ecofy, a Non-Banking Financial Company (NBFC) dedicated to addressing the last mile climate finance gap in the Indian consumer and small business sector, has raised Rs 900 million from FMO, the Dutch Entrepreneurial development bank.
By using FMO's AAA rating and global credibility, the company is planning to grow its loan book, and elevate its credit rating, it added in a statement.
The NBFC is promoted by Eversource Capital and NBFC Veterans, Rajashree Nambiar and Govind Sankaranarayanan.
The strategic investment is divided into two equal tranches. It comes with a commitment to climate action and is intended to fuel Ecofy’s loan book growth, facilitate product diversification, and support expansion pan India.
Dhanpal Jhaveri, CEO-Eversource and vice chairman-Everstone Group said, “Ecofy has been set up to build a digital-first last mile climate finance solutions business to support India’s economic growth sustainably and inclusively. FMO has been a valuable partner to Eversource, and this investment is an opportunity to further consolidate this partnership.”
Rajashree Nambiar, co-founder, MD, and CEO of Ecofy, said, “Securing an investment from FMO marks a pivotal moment for Ecofy, reinforcing our commitment to addressing the climate finance gap for small business owners and individuals. The investment aims to play a critical role in decarbonizing energy, particularly in a rapidly growing economy like India. This collaboration not only strengthens our financial standing but also affirms our vision for a cleaner and more resilient future.”
Cornelis Van Aerssen, Manager at FMO’s Private Equity Department said, “The collaboration with Ecofy gives us the chance to support improved access to climate-friendly products to individuals and SMEs in India. We are especially enthused by the convergence of impact in terms of financial inclusion and positive environmental impact. This investment underscores our confidence in Ecofy's leadership and reaffirms our commitment to supporting innovative solutions for sustainable development.”