Focused on bolstering loan book
The funding, which is divided into two equal tranches, is set to bolster its loan book, diversify its product offerings, and improve its credit rating. An enhanced credit rating is crucial as it enables access to cheaper debt.
Rajashree Nambiar, co-founder, MD, and CEO of Ecofy, said, “Securing an investment from FMO marks a pivotal moment for Ecofy, reinforcing our commitment to addressing the climate finance gap for small business owners and individuals."
Nambiar said the investment aims to play a critical role in decarbonizing energy, particularly in a rapidly growing economy like India.
The impact of FMO's investment
“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.
What does Ecofy do?
Ecofy, promoted by Eversource Capital and industry veterans Rajashree Nambiar and Govind Sankaranarayanan, is focused on financing environmentally friendly projects.
The company focuses on electric two- and three-wheelers and supports businesses working towards reducing climate impact. With this funding, Ecofy plans to expand its reach across India, offering loans and working capital for electric vehicles, rooftop solar, and small-medium enterprises.
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