Ecofy Finance, an Indian NBFC focused on green transition, has secured a USD 12.5 million long-term loan from the Investment Fund for Developing Countries (IFU), a finance institution owned by the Government of Denmark. The funding aims to bridge India's last-mile climate finance gap in consumer, transportation, and small business sectors.

Ecofy plans to finance over one million electric vehicles and more than 1.5 GW of rooftop solar in the next six to seven years, supporting decarbonisation in transportation and energy consumption. The initiative will also help reduce harmful air pollution from fossil fuel vehicles. A portion of IFU’s financing will be directed toward individuals and SMEs, to give them access to green financing.

This investment is part of the India-Denmark green strategic partnership established in 2020. Axis Bank acted as the exclusive financial advisor to Ecofy for the transaction.