Ecofy, a Non-Banking Financial Company (NBFC) with a dedicated focus on fostering green initiatives, announced on Wednesday that it has successfully secured a substantial investment of $10.8 million from FMO, a renowned Dutch Entrepreneurial development bank. The investment, strategically divided into two equal tranches, is earmarked to fuel the expansion of Ecofy’s loan book, facilitate diversification of its product offerings, and support the company’s ambitious nationwide expansion plans.
Rajashree Nambiar, Co-founder, Managing Director, and CEO of Ecofy, expressed enthusiasm about the significant investment and its potential impact on India’s drive towards decarbonizing energy. “This collaboration not only strengthens our financial standing but also affirms our vision for a cleaner and more resilient future,” she stated in a press release.
Ecofy has positioned itself as a key player in the green finance sector by establishing partnerships with various electric vehicle (EV) and cleantech companies in India. One notable collaboration involves Montra Electric, the EV brand under the Murugappa Group umbrella, aimed at streamlining the loan application process for three-wheelers and passenger vehicles. Another strategic alliance has been formed with Tata Power Solar Systems, focusing on financing solar solutions, including solar rooftops and other sustainable products.
The partnership with Montra Electric is designed to enhance accessibility to loans for environmentally friendly transportation options. Ecofy’s collaboration with Tata Power Solar Systems, on the other hand, seeks to promote the adoption of solar solutions across India. The joint initiative specifically targets 1,500 installations in seven Indian states, including Maharashtra, Gujarat, Madhya Pradesh, Karnataka, and others.
Cornelis Van Aerssen, Manager at FMO’s private equity department, emphasized the significance of the collaboration with Ecofy. “The collaboration with Ecofy gives us the chance to support improved access to climate-friendly products to individuals and SMEs in India,” Aerssen stated. He further highlighted the alignment of interests, expressing enthusiasm about the positive impact on both financial inclusion and the environment.
The investment from FMO comes at a crucial juncture as Ecofy strives to make a substantial contribution to India’s sustainability goals. The infusion of $10.8 million will not only bolster the company’s financial capabilities but also pave the way for more extensive initiatives in the green finance sector. Ecofy’s commitment to environmental sustainability, coupled with strategic partnerships with industry leaders, positions it as a key player in driving positive change in India’s rapidly growing economy.
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