Denmark's IFU Backs Ecofy with $12.5M to Drive EV and Solar Adoption The funding is part of the Green Strategic Partnership between India and Denmark, established in 2020 when the prime ministers of both nations signed a collaborative agreement to promote sustainability.
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Ecofy Finance Pvt., a non-banking financial company (NBFC) specializing in climate-focused lending, has secured a $12.5 million long-term loan from Denmark's Investment Fund for Developing Countries (IFU). The fresh infusion of capital is set to accelerate Ecofy's mission of expanding green financing for electric vehicles and rooftop solar systems in India.
As reported by YourStory, with this funding Ecofy aims to scale its loan offerings, targeting the deployment of over 1 million electric two- and three-wheelers and supporting 1.5 gigawatts of rooftop solar capacity over the next six to seven years. The company focuses on closing the climate finance gap by providing loans to consumers, small businesses, and transport operators who typically struggle to secure funding from traditional financial institutions.
"The long-term capital provided by IFU empowers us to scale our climate-focused lending solutions while breaking down barriers for underserved borrowers," said Vivek Khandelwal, treasury head at Ecofy. "By combining innovative financing models with a strong commitment to sustainability, we aim to enable access to electric vehicles and rooftop solar, and to drive systemic change toward a cleaner, more inclusive economy."
"IFU is very pleased to support Ecofy in its pursuit to provide accessible climate finance to the masses," said Vibhor Singhal, Investment Manager at IFU. "This investment aligns well with IFU's strategy, as India is a core focus country and climate mitigation and access to finance are key impact priorities for IFU."
The funding is part of the Green Strategic Partnership between India and Denmark, established in 2020 when the prime ministers of both nations signed a collaborative agreement to promote sustainability. Axis Bank acted as the exclusive financial advisor to Ecofy for this transaction.
Founded in 2022, Ecofy positions itself as India's first exclusively green, retail-focused NBFC, offering loans for electric vehicles, rooftop solar systems, and green businesses. With IFU's support, the company aims to bridge the financing gap, drive clean energy adoption, and contribute to India's long-term sustainability goals.
