Exclusive: Ecofy set to raise Rs 380 Cr led by British International Investment

Ecofy Finance, a non-banking financial corporation focused on climate change solutions, is set to raise Rs 380 crore (approximately $43 million) in its Series B equity round led by British International Investment.

The company’s board has passed a special resolution to issue 20 equity shares and 38.05 crore Series B preference shares at a face value of Rs 10 each to raise Rs 380.5 crore, according to its regulatory filings sourced from the Registrar of Companies (RoC).

British International Investment (BII) will lead the round with Rs 220 crore, while Finnfund Digital Access Impact Fund will invest Rs 70.5 crore. Existing investor FMO and promoter Green Growth Equity Fund (Eversource Capital) will contribute Rs 65 crore and Rs 25 crore, respectively.

Following the round, GGEF (Eversource Capital) and FMO will hold 49.59% and 16.23% stakes in Ecofy, while new investors BII and Finnfund will own 20.36% and 6.53%, respectively. As per Entrackr’s estimates, the company is valued at around Rs 800 crore or $89 million post-allotment.

According to the filings, the company aims to support sustainable private sector growth in developing and emerging markets by investing in businesses, projects, and financial institutions. The fresh proceeds will be used to meet its working capital requirements.

Ecofy provides financing for economically sustainable climate initiatives, including electric vehicles (EVs), rooftop solar systems, energy-efficient equipment, energy storage, e-mobility, waste recycling, and water management, among others.

The company had earlier raised Rs 90 crore in equity funding in January 2024 from FMO, and later secured around Rs 110 crore through a long-term loan facility (debt) from Denmark’s Investment Fund for Developing Countries (IFU) in March 2025.

On the financial front, Ecofy’s revenue from operations surged 4.8X to Rs 93.3 crore in FY25 compared to Rs 19.19 crore in FY24. At the same time, its losses grew by 15.6% to Rs 42.28 crore.

As an early mover into the financing space for solar and EVs,  Ecofy has done well to build a portfolio that clearly meets with its backers approval for quality. A big intangible  is the learnings the firm has  in terms of the  issues that can impact credit quality in the segment.  A real benefit is of course the distribution muscle as well. With a long, clear pathway for both solar growth and electrification of transport in India, competition has moved in of course, but Ecofy remains well placed to build on its learnings as an early mover.