Ecofy Partners with IFU to Accelerate Green Financing in India

Funding | Mar 27, 2025 | Investment Fund for Developing

Ecofy Finance Private Limited has secured DKK 90 million in loan finance from the Investment Fund for Developing Countries (IFU) to accelerate the green transition in India. The funding is set to expand Ecofy's loan portfolio for financing electric vehicles and rooftop solar systems. Over the next 6-7 years, Ecofy aims to finance more than one million electric vehicles and 1.5 GW of rooftop solar installations, significantly contributing to the decarbonisation of India's transportation and energy sectors. Electric vehicles financed through Ecofy are expected to reduce air pollutants resulting from fossil fuel vehicles. The investment aligns with IFU's strategy focusing on climate mitigation and access to finance. Ecofy's financial solutions target individuals and SMEs, addressing the last-mile climate finance gap and promoting inclusive access to green technology. The partnership is part of a broader green strategic collaboration between India and Denmark initiated in 2020.

Sectors

Renewable Energy
Financial Services
Automotive Industry

Geography

India – The primary focus of the article is on financing the green transition in India through electric vehicles and rooftop solar systems.
Denmark – The Investment Fund for Developing Countries (IFU) is a Danish entity, indicating involvement from Denmark in the financial support provided.

Industry

Renewable Energy – The article focuses on financing electric vehicles and rooftop solar systems, which are key components of the renewable energy transition.
Financial Services – Ecofy Finance Private Limited is a financial company providing loans for green initiatives, indicative of the financial services industry.
Automotive Industry – The article discusses significant financing for electric vehicles, which is directly related to the automotive industry.

Financials

DKK 90 million – The financial sum provided by IFU to Ecofy as a long-term loan for green financing initiatives.

Participants

Name	Role	Type	Description
Ecofy Finance Private Limited	Target Company	Company	A financial company focused on accelerating the green transition in India, particularly in electric vehicles and solar energy.
Investment Fund for Developing Countries (IFU)	Investor	Company	A Danish investment fund providing DKK 90 million to Ecofy for green finance in India.
Vivek Khandelwal	Treasury Head at Ecofy	People	Responsible for overseeing financial strategies and leveraging the investment to expand Ecofy's loan offerings.
Vibhor Singhal	Investment Manager at IFU	People	Represents IFU in the transaction and highlights the alignment of this investment with IFU's strategic priorities.