Ecofy Secures $12.5 Million Loan From Investment Fund For Developing Countries

Ecofy Finance announced it has secured a $12.5 million long-term loan facility from the Investment Fund for Developing Countries (IFU).

Additionally, the green transition-focused NBFC aims to address the last-mile climate finance gap in India's consumer, transportation and small business sectors. With targets, the NBFC plans to finance over one million electric vehicles and more than 1.5 GW of rooftop solar within the next six to seven years.

This is expected to support decarbonisation of the transportation sector and power consumption of households and small businesses in India. The electric vehicles financed through Ecofy will reduce a range of harmful air pollutants caused by fossil fuel vehicles. Furthermore, a part of the financing provided by IFU would be directed towards individuals and SMEs, who find traditional financing channels less accessible and therefore to a large extent are excluded from acting as green consumers.

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“This investment is a pivotal moment for both, Ecofy and the green finance ecosystem in India. The long-term capital provided by IFU empowers us to scale our climate-focused lending solutions while breaking down barriers for underserved borrowers. 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,” Vivek Khandelwal, Treasury Head, Ecofy, said.

The financing from IFU, structured as long-term debt capital, is part of the green strategic partnership between India and Denmark, which was established in 2020 when the prime ministers of both nations signed the agreement.