Ecofy, India’s green-only non-banking financial company (NBFC) dedicated to addressing the last mile climate finance gap in the Indian consumer and small business sector, has secured an investment of INR 900 million ($10.83 million) from FMO, the Dutch Entrepreneurial development bank.

Leveraging FMO’s AAA rating and global credibility, Ecofy plans to grow its loan book, enable product diversification, and elevate its credit rating, Ecofy said in a statement on Wednesday.

Ecofy is a pioneering NBFC created to finance India’s green transition.

Promoted by Eversource Capital, Ecofy’s vision is to be a catalyst in accelerating the transition towards a net zero-carbon world.

It partners with individuals and small businesses who want to reduce their carbon footprint and restore balance to the planet.

Ecofy offers loans for electric vehicles (two and three-wheelers), rooftop solar, and small-medium enterprises providing end to end (E2E) digital experience.

According to the statement, the strategic investment is divided into two equal tranches. It comes with a commitment to climate action and is intended to fuel Ecofy’s loan book growth, facilitate product diversification, and support expansion pan India.

“Ecofy has been set up to build a digital-first last mile climate finance solutions business to support India’s economic growth in a sustainable and inclusive manner,

“FMO has been a valuable partner to Eversource, and this investment is an opportunity to further consolidate this partnership,” said Dhanpal Jhaveri, Chief Executive Officer of Eversource and Vice Chairman of Everstone Group.

Rajashree Nambiar, Co-founder, Managing Director and Chief Executive Officer of Ecofy, said that securing an investment from FMO marks a pivotal moment for Ecofy, reinforcing their commitment to addressing the climate finance gap for small business owners and individuals.

“The investment aims to play a critical role in decarbonizing energy, particularly in a rapidly growing economy like India,

“This collaboration not only strengthens our financial standing but also affirms our vision for a cleaner and more resilient future,” he added.

Cornelis Van Aerssen, Manager at FMO’s Private Equity Department, said the collaboration with Ecofy gives them the chance to support improved access to climate friendly products to individuals and SMEs in India.

“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,” he added.

Founded in 2018 and headquartered in Mumbai, Eversource Capital is a leading climate impact investor.

It is a partnership between the Everstone Group, one of India and South-East Asia’s leading independent investment platform with $7 billion in asset under management (AUM) in assets, and Lightsource bp, a leading European renewable energy company, managing large-scale renewable energy projects worldwide.

Eversource aims to mobilize and deploy capital at scale to combat climate change and accelerate towards net zero goals driving twin outcomes of impact and returns.

The firm manages India’s largest climate impact fund with assets under management over $741 million.

It focuses on integrating climate and environmental, social, and corporate governance (ESG) into the investment process with a vision to deliver positive climate action, promote resource efficiency, inclusive economic growth, and favorable working conditions.

Eversource has built and scaled platforms across renewable energy, energy efficiency, energy storage, e-mobility, resource conservation and associated value chain sectors.

FMO is an investor supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.

The firm focuses on three sectors that have a high development impact: agribusiness, food and water, energy, and financial institutions.

With a total committed portfolio of EUR 13 billion ($14.1 billion) spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.

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