Green energy-focused non-banking finance company Ecofy has raised Rs 90 crore in an equity round from Dutch entrepreneurial development bank FMO.
With this infusion, Ecofy plans to grow its loan book, diversify its product base and eventually improve its own credit rating, the company said in a release on Wednesday. An improved credit rating helps lenders access debt at cheaper rates.
Ecofy is promoted by Eversource Capital and industry executives Rajashree Nambiar and Govind Sankaranarayanan. While Nambiar was the CEO of Fullerton India in her previous avatar, Sankaranarayanan had spent a decade at Tata capital before starting up.
“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,” said Nambiar, CEO, Ecofy.
The Mumbai-based NBFC finances electric two- and three-wheelers and also funds businesses which are working towards reducing climate impact. It offers both term loans and working capital loans for these entities.
“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,” said Cornelis Van Aerssen, manager at FMO’s Private Equity Department.
