Ecofy Finance Private Limited has secured a long-term loan facility of USD 12.5 million, equivalent to approximately INR 104 crore, from the Danish government-owned development finance institution, Investment Fund for Developing Countries (IFU). Ecofy plans to utilise the capital to expand its climate-focused loan portfolio and finance over one million electric vehicles and 1.5 gigawatts of rooftop solar capacity in India over the next six to seven years. The company’s approach focuses on last-mile financing, particularly for underserved individuals and small and medium enterprises (SMEs), who often face limited access to traditional lending channels.
The funding will help accelerate the adoption of cleaner transport and decentralised solar power, both key components of India’s decarbonisation strategy. Ecofy’s financial support for electric vehicles is expected to significantly reduce air pollution caused by petrol and diesel engines, while rooftop solar adoption will reduce dependence on grid-based fossil power, especially for small businesses and households.
Vivek Khandelwal, Treasury Head, Ecofy, noted that the long-term capital from IFU allows Ecofy to scale its lending operations and lower the entry barriers for borrowers in low-access segments. He highlighted the company's aim to offer financing that combines affordability, flexibility and climate responsibility.
Vibhor Singhal, Investment Manager, IFU, stated that the investment fits into IFU’s larger impact strategy, where India is considered a priority country, and climate mitigation and financial inclusion are core goals.
The funding arrangement is structured as long-term debt, forming part of the India-Denmark Green Strategic Partnership that was signed in 2020. The agreement focuses on strengthening cooperation in sustainable development, particularly in renewable energy and green mobility.
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