Ecofy Finance Private Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Ecofy is a non-banking financial institution set up in India in 2022 with a mission to accelerate the country’s green transition. The company provides financing solutions for environmentally sustainable sectors, including retail electric vehicles (EVs), rooftop solar, and SME initiatives focused on improving energy efficiency. With a nationwide presence, Ecofy serves both retail customers and small to medium enterprises (SMEs). Ecofy is promoted by Eversource Capital, a leading climate impact investor and partner of FMO.
What is our funding objective?
Ecofy’s aim is to accelerate the adoption of environmentally friendly products at the retail level by improving access to affordable financing for their purchase. The additional capital infusion from FMO is expected to further drive the company’s growth by enabling a higher volume of loan disbursals, expanding its product portfolio, and strengthening its footprint across India. Moreover, FMO’s participation in this equity round reinforces confidence in Ecofy’s business model and is expected to attract additional investors to support its vision.
Why do we want to fund this investment?
The investment opportunity aligns closely with FMO’s commitment to climate action (SDG 13). Ecofy is building a 100% green portfolio as it exclusively finances climate-positive segments and businesses. Through this, FMO aims to support the decarbonization of energy in India - an essential goal for a rapidly growing economy. FMO’s funding (via MASSIF & Building Prospects) is expected to act as a catalyst for attracting future commercial capital. In addition, Ecofy now qualifies for the Reducing Inequalities label for its efforts in offering micro loans to individuals often overlooked by traditional lenders, helping more people access financing for green products.
What is the Environmental and Social categorization rationale?
The investment has been categorized as E&S Category C under FMO’s Sustainability Policy, as Ecofy primarily focuses on retail and SME financing. While the direct E&S risks in this type of business mainly relate to labor conditions and health and safety, indirect risks may arise from the activities of underlying SME clients. To address these, Ecofy has established robust ESG policies and exclusion lists aligned with national and international E&S standards, ensuring effective identification, management, and monitoring of environmental and social risks and opportunities within its lending operations. Additionally, Ecofy has implemented a Environmental and Social Management System (ESMS) to strengthen its oversight and sustainability practices.
More investments
| Date | Total FMO financing |
|---|---|
| 1/25/2024 | INR 450.00 MLN |
| 1/25/2024 | INR 450.00 MLN |
| 11/5/2025 | INR 325.00 MLN |
- Website customer/investment
- https://www.ecofy.co.in/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 11/5/2025
- Deadline for feedback
- 12/5/2025
- Total FMO financing
- INR 325.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C