Project detail - Ecozen Solutions Private Limited

Who is our prospective customer?

Ecozen Solutions Private Limited ("Ecozen" or the "Company") is an Indian cleantech company founded in 2010, with deep roots in agricultural energy solutions. Its flagship product is a smart, IoT‑enabled solar-powered pump system for agricultural irrigation. Building on its expertise in decentralized solar technology, the Company has begun diversifying its product portfolio to include other solar‑powered solutions, such as solar cold storage for post‑harvest management, solar air conditioners (ACs), solar rural motors, and solar rooftops.

What is our funding objective?

FMO financing comprises (i) tranche 1: USD 10mln (INR equivalent) committed for 2026; and (ii) tranche 2: USD 10mln (INR equivalent) uncommitted, subject to agreed conditions, for 2027. Proceeds will be used to finance the working capital needs of Ecozen’s agri-related businesses. The facilities will be INR denominated with a tenor of three years.

Why do we want to fund this investment?

FMO will provide financial additionality by offering subordinated financing and addressing a financing gap. FMO will also provide non financial additionality through potential CG strengthening action plans and/or provision of gender-focused TA. 100% of the FMO’s investment is labelled as Reducing Inequalities as it supports smallholder farmers as part of the value chain, contributing to SDG 10. 100% of the FMO’s investment is labelled as Green as it supports activities that contribute to climate mitigation, contributing to SDG 13, in line with the FMO’s methodology to determine the green finance attribution.

What is the Environmental and Social categorization rationale?

The E&S risk is classified as Category B due to the limited potential adverse E&S risks and impacts arising from the company's activities, which can be addressed through appropriate mitigation measures. Applicable IFC Performance Standards (PS) are PS1–PS4, while PS5–PS8 are not considered applicable at this stage. Ecozen's operations are primarily focused on the assembly of solar-powered devices, with the proposed financing intended for working capital purposes. Key E&S risks under PS1–PS4 are generally site-specific to the assembly facility and relate to supply chain management, particularly the sourcing of solar panels. Given the current investor group, including reputable impact- and development-oriented investors, and the support provided to date on Ecozen's E&S management, Ecozen is well positioned to further enhance its E&S management and address risks commensurate with the scale and nature of its operations.