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Ecofy Finance Secures Rs108.76 Cr Loan from Denmark’s IFU for EV and Rooftop Solar Expansion

Ecofy Finance, a green transition-focused non-banking finance company, has secured a Rs108.76 crore long-term loan from Denmark’s Investment Fund for Developing Countries (IFU). The funding will help Ecofy expand its loan portfolio for electric vehicles (EVs) and rooftop solar systems, particularly targeting individuals and small businesses lacking access to financing. Axis Bank acted as the exclusive financial advisor for the transaction.

Key Highlights:

• The financing is part of the India-Denmark Green Strategic Partnership (est. 2020).
• Ecofy aims to finance over Rs10 lakh EVs and 1.5 GW of rooftop solar within seven years.
• The funds will support the decarbonization of India’s transportation and power sectors.
• Vivek Khandelwal, Treasury Head, Ecofy, emphasized the goal of breaking financial barriers for underserved borrowers and driving systemic change toward a cleaner economy.
• IFU, which invests in developing countries across multiple continents, expects its capital under management to grow from Rs19,320 crore in the coming years.

India’s Growing EV and Clean Energy Market:

• EV sales in India reached 0.195 crore units in 2024, a 27% increase from 2023.
• In January 2025, Ecofy secured Rs90 crore from FMO, a Dutch entrepreneurial development bank, to support product diversification and nationwide expansion.

This investment strengthens India’s green finance ecosystem, making clean mobility and rooftop solar more accessible, and aligns with the country's broader sustainability and energy transition goals.