Ecofy Finance, a non-banking finance company, has secured a long-term loan of $12.5 million from Denmark’s Investment Fund for developing countries (IFU). The funding will be used to expand Ecofy’s loan portfolio for electric vehicles (EVs) and rooftop solar systems, with a portion allocated to assisting individuals and small and medium-sized enterprises that lack financial resources to adopt green solutions. Axis Bank acted as the exclusive financial advisor for this transaction.
The financing is part of the green strategic partnership between India and Denmark, established in 2020, which aims to support sustainable development initiatives. Ecofy plans to finance over 1 million EVs and more than 1.5 GW of rooftop solar capacity within the next seven years.
In December 2024, Ecofy partnered with Federal Bank to provide financing solutions for MSMEs investing in commercial rooftop solar, aiming to support 3,600 kW of installations annually and reduce over 2,500 tonnes of carbon emissions each year.
