Ecofy, the Mumbai-based non-banking financial company that positions itself as India’s first green-only NBFC, has secured $15 million in debt financing from Mirova, the sustainable investment affiliate of Natixis Investment Managers. The funds will be deployed toward onward lending for residential and commercial rooftop solar installations, as well as electric vehicle financing across India.
For Mirova, the Ecofy bet follows its first India foray in November 2024 — a $10 million debt facility to Jaipur-based MSME lender Namdev Finvest, also focused on clean transport and renewable energy lending.
The deal arrives barely two months after Ecofy raised ₹380.5 crore (approximately $42 million) in a Series B equity round co-led by British International Investment and Finnfund. Before that, in January 2024, Dutch development bank FMO had extended ₹90 crore. The capital stack now reads like a roll call of European development finance institutions — BII (UK), Finnfund (Finland), FMO (Netherlands), and now Mirova (France/Luxembourg) — an unusual alignment that reflects both the quality of Ecofy’s loan book and the alignment of its mandate with global climate finance priorities.
Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan — two veterans who have spent decades building large-scale retail lending institutions, including Tata Capital, Fullerton India, IIFL Finance, and Standard Chartered — Ecofy has scaled to serve over 130,000 customers across 26 states and more than 500 cities in just three years. Its loan book covers electric two-wheelers and three-wheelers, residential and commercial rooftop solar, energy-efficient equipment, energy storage, and sustainability-linked credit for small businesses. Assets under management have crossed ₹1,400 crore, supported by partnerships with over 100 OEMs and 23 banks and financial institutions.
“This partnership with Mirova marks another significant milestone in Ecofy’s journey to scale green financing. Access to long-term, mission-aligned capital strengthens our ability to reach households and small businesses for their rooftop solar and electric mobility solutions.” said Vivek Khandelwal, Head of Treasury, Ecofy
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On the financials, Ecofy’s revenue from operations grew 4.8x to ₹93.3 crore in FY25 from ₹19.19 crore in FY24 — the kind of trajectory that justifies the accumulation of DFI capital. The company remains in investment mode, posting a loss of ₹42.28 crore as it continues to build distribution and technology capabilities. The capital adequacy ratio post-fundraise stands at approximately 50%, providing significant headroom for portfolio growth.
For Ecofy, the DFI-anchored debt model is not incidental — it is structurally cheaper than commercial borrowing, allowing the company to price green loans competitively against conventional vehicle and equipment finance. That structural advantage may matter most as incumbents like Tata Capital and Mahindra Finance begin moving into EV and solar lending, bringing lower cost of capital and established distribution. Ecofy’s answer is a three-year head start, a 100% green mandate that appeals to impact-focused lenders, and a founding team that has already built credit books of comparable size — just without the climate thesis attached.
