Our investment
Description of the investment.
Description of the investment.
Ecofy is a registered Non-Banking Financial Company (NBFC) in India focused on green financing for various products i.e. electric vehicles including electric two-wheelers (e2Ws) and electric three-wheelers (e3Ws), Residential Rooftop Solar (“Resi RTS”) and green MSME loans. Ecofy operates via a unique digital first model, leveraging partnerships with OEMs (120+ partners) for customer sourcing. OEMs, in turn, direct their dealership networks (1,000+) to Ecofy when customers look to finance these purchases.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Reduced carbon emissions and air pollution (SDG 13) Improved quality of life by increasing access to more affordable and reliable clean energy (SDG 7) Improved access to finance leading to increased economic opportunities (SDG 8) |
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How?
| Primary | Secondary |
|---|---|
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Direct: Ecofy facilitates the financing of e2Ws and e3Ws (30% and 20% of FY25 AUM resp.), shifting customers away from Internal Combustion Engine (ICE) alternatives. Ecofy also increases access to Radio Teleswitch Service (RTS) power for individuals and businesses, providing an alternative to fossil fuels energy sources, as well as other green Micro, Small and Medium Enterprises (MSME) loans. Direct: Residential RTS (30% of FY25 AUM) provides households with a reliable energy source while significantly reducing electricity costs. Over time, this leads to substantial cost savings, with the potential for surplus energy generation to be credited back to customers’ account. Economic Enabler: Ecofy expands credit access for Green MSMEs through equipment and solar commercial & industrial (C&I) financing (15% as of FY25 AUM) and supply chain financing (5% as of June’25 AUM) enabling them to scale operations and boost productivity. 3-W EV financing enables drivers to engage more actively in income-generating activities like goods and passenger transport. |
Catalysing markets: India’s EV financing market is still nascent and perceived as high-risk by traditional financiers, largely due to uncertainties surrounding residual value of the EVs. Ecofy could demonstrate to financiers a viable way to enter India’s EV financing market. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Customers (retail) |
India |
Most customers are middle income with the average ticket size for RTS residential loans between INR 1.9 Lakh (FY25). |
| Customers (retail & business owners) |
India |
Most of the MSME green loans are for supply chain finance, predominately to RTS and EV dealers and installers. Average loan size to MSMEs is INR 18L (FY25). Most of the e3Ws are used of income-generating activities and the average loan size to purchase an e3W is INR 2.5L (FY25). |
| Planet |
India |
Global |
How much?
| Scale | Depth/Duration |
|---|---|
|
Ecofy is expected to scale its RTS, e2/3Ws snd MSME books, reaching more customers over time. |
Depth of impact will be greater for products that result in the highest levels of emissions abated as Ecofy expands. From 2022 to 2025, Ecofy’s RTS and EV loans reduced emission by 9,577tCO2e and 6,775 tCO2e resp., equating to the annual emissions of 8,000 people in India. From 2026-2030, Ecofy is estimated reduce 80,690 tCO2e emissions. Following the installation of RTS, households experience a reduction of more than 70% in electricity costs over a five-year period. On average, rooftop solar installation costs are offset by energy savings within 3 to 5 years. On average, drivers of passenger e-rickshaw earn an extra 10,000 INR p.a. from lower operational costs. For those customers using their EVs for income-generating activities, duration of impact will exceed the tenor of the loan. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Our contribution is rated High based on lack of commercial interest due to the sector’s nascency. |
Risk
Execution RiskThe company may not be able to scale in line with its ambitions. Mitigant: The Company’s digitally led business model enables Ecofy to expand at pace whilst maintaining low operating costs. Moreover, Ecofy’s entrenched relationships with India’s leading Original Equipment Manufacturer (OEM) and Dealer network provides them with a direct channel of customers, creating a sustained demand pathway for growth. Alignment RiskThe risk that Ecofy diversifies its product portfolio away from green financing as it scales its operations. Mitigant: We have comfort that there is alignment with other shareholders on the Ecofy’s commitment to green financing. Residual risk will need to be tolerated. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. The Impact Score shown is based on the 2022-2026 Impact Score methodology. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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8 |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
The E&S risk categorisation is medium-low (B-), given the inherent E&S risk nature of lending products (EV’s and solar home systems), and accounting for the relatively robust E&S related controls and capacity Ecofy has in place despite being such a nascent company. BII developed a joint E&S Action plan with co-lenders which will support Ecofy to strengthen their Environmental and Social Management System (ESMS) and align HR policies with IFC PS2 and safeguarding requirements.
Environmental and social risk
Medium-Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D8449
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- India
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Specialized Finance
- Investment policy :
- Catalyst
- Investment type :
- Equity
- Start date :
- December 2025
- Amount :
- $24.64m
- Currency of investment :
- INR
- Domicile
:
The company or investment fund’s place of incorporation.
- India
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
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Gender and climate finance facts
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Fully qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Mitigation
- 2X gender finance
:
Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
- Fully qualified
- 2X qualification criteria:
:
2X Criteria the investment qualifies under. See 2X Criteria for more information.
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- Leadership — Board of Directors/Investment Committee
2X threshold 30%: Investee already meets threshold - Leadership — Senior Management
2X threshold 30%: Investee already meets threshold - Employment
2X threshold 25%: Investee commits to meet threshold - Indirect/Portfolio
2X threshold 30%: Investee commits to meet threshold - Governance and Accountability
- Leadership — Board of Directors/Investment Committee
- 2X sector
:
Indicates the specific 2X sector benchmark the investment qualifies under. See 2X Criteria for more information.
- Financial and Insurance Activities
- 2X country
:
Indicates the specific 2X country benchmark the investment qualifies under. See 2X Criteria for more information.
- India
- Climate finance
