Ecofy Secures DKK 90 Million from IFU for Expanding India's Green Initiatives
Deal News | Mar 27, 2025 | Investment Fund for Developing
The Danish Investment Fund for Developing Countries (IFU) has provided DKK 90 million in loan financing to Ecofy Finance Private Limited, a green finance company in India. This funding aims to support the financing of over one million electric vehicles and 1.5 GW of rooftop solar power in the next 6-7 years. Ecofy, with this backing, plans to enhance the green transition in India's transportation and power sectors by making clean energy solutions more accessible, especially to underserved communities. India's electric vehicle market is experiencing significant growth, and with government subsidies since 2015, electric two and three-wheelers have seen impressive sales increases. Ecofy is positioned to fill a crucial last-mile financing gap, while addressing financing challenges for rooftop solar installations. This investment aligns with the strategic partnership established between India and Denmark for green development.
Sectors
- Renewable Energy
- Financial Services
- Automotive
Geography
- India – The article primarily focuses on investments and green initiatives taking place in India, targeting its electric vehicle and solar market.
- Denmark – Involves IFU, a Danish investment firm, and highlights the green strategic partnership between India and Denmark.
Industry
- Renewable Energy – The article discusses investment in rooftop solar installations and electric vehicles, which are key segments of the renewable energy sector.
- Financial Services – Involves Ecofy and IFU's roles as financial facilitators for green projects, making it a part of the financial services industry.
- Automotive – The financing for electric vehicles positions this as part of the automotive industry, focusing on electrification and green vehicle adoption in India.
Financials
- DKK 90 million – The amount of loan finance provided by IFU to Ecofy for green initiatives.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ecofy Finance Private Limited | Target | Company | A financial company focused on green finance, specifically in the electric vehicle and solar markets in India. |
| IFU (Investment Fund for Developing Countries) | Investor | Company | A Danish government-backed investment fund supporting sustainable development in developing countries. |
| Axis Bank | Financial Advisor | Company | Provided financial advisory services to Ecofy for the transaction with IFU. |
| Vivek Khandelwal | Treasury Head | Person | Treasury Head at Ecofy, involved in the strategic planning and implementation of the green finance project. |
| Vibhor Singhal | Investment Manager | Person | Investment Manager at IFU, responsible for supporting and managing the investment deal with Ecofy. |