Ecofy Raises Rs 90 Crore from FMO to Boost Green Lending in India

Mumbai-based non-banking lender Ecofy, which positions itself as India's sole green-only NBFC, announced on Wednesday that it has secured Rs 90 crore in funding from The Netherlands-based FMO. The Dutch entrepreneurial development bank will receive an undisclosed amount in exchange for its investment in the Non-Bank Financial Company (NBFC).

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Fostering Growth through Strategic Collaboration

Ecofy intends to leverage FMO's exceptional credit rating and credibility to expand its loan portfolio. Additionally, the company plans to diversify its product offerings as part of its growth strategy. This funding, structured across two tranches, underscores a shared commitment to climate action.

Driving Positive Environmental Impact

Cornelis Van Aerssen, Manager in the Private Equity Department at FMO, expressed enthusiasm about the collaboration with Ecofy. He highlighted the opportunity to enhance access to climate-friendly products for individuals and small and medium-sized enterprises (SMEs) in India. The convergence of financial inclusion and positive environmental impact was particularly compelling for FMO.

Decarbonizing Energy in a Growing Economy

The investment aims to play a pivotal role in decarbonizing energy, especially in a rapidly developing economy like India. Ecofy Co-Founder, Managing Director, and Chief Executive Rajashree Nambiar emphasized that this partnership not only bolsters the company's financial standing but also validates its vision for a cleaner and more resilient future.

About Ecofy

Ecofy is a brainchild of Eversource Capital and NBFC industry veterans Nambiar and Govind Sankaranarayanan. The company stands out as India's only green-only NBFC, demonstrating its commitment to sustainable financing and environmental stewardship.