As India accelerates its transition towards a low-carbon economy, access to green finance is becoming critical for individuals and businesses looking to adopt sustainable practices. At the forefront of this movement is Ecofy, a pioneering green-only Non-Banking Financial Company (NBFC) that is redefining how climate-positive choices are financed across the country.
In this exclusive interview with Santosh Shidhaye, Head of ESG at Ecofy, we explore the company’s unique vision, technology-driven approach, and rapidly growing impact on the green financing landscape. From enabling electric mobility and rooftop solar adoption to supporting grassroots entrepreneurs through digital lending tools, Ecofy is building a fully digital, impact-led ecosystem for sustainable growth.
The conversation also sheds light on India’s evolving green finance sector, the role of behavioral change and awareness in driving adoption, and Ecofy’s roadmap for scaling climate-friendly lending solutions to over a million customers in the coming years.
Q&A
Q. Ecofy has positioned itself as a green-only NBFC, a unique and much-needed concept in today’s climate-conscious world. What inspired the inception of Ecofy, and how do you see its role evolving in India’s green financing ecosystem?
A. Ecofy was founded with a clear and uncompromising vision that revolves around advancing green finance. Frankly, it is the heart of our business philosophy and operational strategy. While other financial institutions offer a mix of conventional and green products, we have chosen to commit ourselves entirely towards climate-positive lending. This decision reflects our belief that meaningful impact comes from deep focus and long-term alignment with sustainability goals.
Our journey began with funding from the Green Growth Equity Fund managed by Eversource Capital; FMO (the Dutch Entrepreneurial Development Bank) is now one of Ecofy’s investors. From the beginning, our aim has been to provide accessible finance to individuals and businesses who want to adopt renewable energy, electric mobility, and resource-efficient technologies. Over time, we envision Ecofy becoming a vital player in shaping the green finance landscape in India. We aim to enable widespread adoption of sustainable practices by bringing climate finance to the forefront of everyday choices.
Q. How has the green financing landscape in India changed in recent years, and what are the biggest opportunities and challenges you foresee in accelerating this momentum?
A. The evolution of green financing in India has been truly significant. In the early years, multilateral institutions like the World Bank led the way by offering green bonds to fund infrastructure projects. This was followed by impact investing that focused on corporate social responsibility and environmental compliance. Today, the focus is shifting toward carbon finance, which is crucial to managing climate risk.
While many instruments are available to address upstream carbon emissions, we see a large gap at the consumer level. Ecofy focuses on this underserved space. The opportunity lies in providing tailored financial solutions to individuals, small businesses, and entrepreneurs who seek to make climate-conscious choices. The key challenges include limited access to climate-specific risk models, lack of awareness among borrowers, and the need for stronger ecosystem partnerships. By addressing these issues, we believe it is possible to accelerate green adoption at scale.
Q. Fintechs like Ecofy are at the forefront of democratizing access to climate-positive choices. How are you leveraging technology to bring sustainable finance to underserved and grassroots communities?
A. Technology is central to our mission. Our digital lending platform enables us to process loan applications quickly, often within a few hours, using an intuitive and user-friendly interface. This capability has helped us grow our customer base from a few hundred to more than 88,000 in a short time.
We use IoT devices on electric vehicles and solar systems to collect real-time performance data. These insights help us understand how customers use green technologies and allow us to improve our services. We also conduct periodic online surveys to measure social and environmental impact. These tools help us engage with grassroots communities and support more informed decision-making among our borrowers.
Q. Could you elaborate on the key sectors or product segments that Ecofy is currently focused on? Which of these do you believe hold the most promise for scale and impact?
A. Our current focus spans four key segments: electric two-wheelers, electric three-wheelers, rooftop solar, and SMEs. Among these, electric two-wheelers are gaining popularity due to their affordability and wide usage in both rural and urban settings. Electric three-wheelers are especially useful in smaller towns and outskirts, where they serve both passenger and cargo transport needs.
However, rooftop solar systems offer the highest potential for long-term impact. With strong policy support and falling equipment costs, this segment can transform how households and businesses generate electricity. Ecofy offers financing models that address the specific needs of solar adoption, including extended repayment timelines and flexible cash flow structures.
Q. What role do behavioral insights and consumer awareness play in driving the adoption of sustainable financial products? How does Ecofy approach this challenge?
A. Consumer behavior plays a critical role in the adoption of green finance. Most people care about the environment but may not always understand the benefits of choosing sustainable alternatives. At Ecofy, we focus on making these benefits visible and relatable.
We include simple tools in our customer journey that show potential savings, reduced carbon emissions, and long-term value. Our studies show that when people are informed about these advantages, they are more likely to adopt climate-positive solutions and share their experience with others. This awareness builds trust and contributes to a growing community of informed borrowers who value sustainability.
Q. With rising consumer interest in eco-conscious living, how do you envision the future of sustainable consumption and lending in India? Are we at an inflection point?
A. India is experiencing a clear shift in consumer attitudes. More people are now choosing products and services that align with environmental values. With support from policies, increased awareness, and better access to green options, we are entering a phase where sustainable consumption is becoming more mainstream.
In the coming years, we expect lending decisions to go beyond just financial indicators. Environmental performance will become a key factor. Customers who make sustainable choices may receive more favorable financing terms. Ecofy is preparing for this transition by building models that integrate environmental data into credit assessments. This approach will create a more holistic and future-ready financial system.
Q. Data and digital ecosystems are integral to scaling impact-led finance. What innovations or tools is Ecofy deploying to build a seamless, fully digital green financing journey for its customers?
A. Ecofy is revolutionizing green finance through a comprehensive digital ecosystem that seamlessly integrates cutting-edge technology at every touchpoint. Our advanced machine learning algorithms power fully automated credit scorecards that deliver precise underwriting decisions, dynamic pricing models, and intelligent collection strategies while eliminating traditional bottlenecks and ensuring optimal risk management. AI-driven KYC processes streamline customer onboarding with instant document verification and validation which dramatically reduce processing times while maintaining the highest compliance standards.
Our business intelligence infrastructure generates automated analytics and real-time reporting capabilities that provide actionable insights for strategic decision-making and operational excellence. Moreover, robust data pipelines continuously monitor and validate data integrity through iterative quality checks, ensuring our platform operates on the most reliable information foundation. We use IoT devices on electric vehicles and solar systems to collect real-time performance data.
This integrated digital approach transforms the traditional financing experience into a frictionless, transparent, and highly efficient journey that accelerates the adoption of sustainable solutions across diverse customer segments.
Q. Collaboration often plays a pivotal role in scaling sustainability efforts. Could you share how your partnerships—with ecosystem players, manufacturers, or government bodies—have helped amplify Ecofy’s mission
A. Partnerships are essential for reaching our goals. Ecofy works closely with original equipment manufacturers, solar installers, service providers, and energy companies. These collaborations help us support the entire value chain, from product creation to end-user financing.
We also engage with government programs and incentive schemes that encourage green adoption. By integrating our financial solutions with policy tools and industry networks, we help ensure that customers receive consistent support and better access. These efforts improve customer outcomes and expand our impact on sustainable development.
Q. Looking ahead, what is your vision for Ecofy over the next 3 to 5 years? Are there new products, markets, or impact goals you are particularly excited about?
A. In the next few years, we aim to become a trusted climate-fintech leader in India. Our upcoming products will include carbon-linked financing, leasing solutions for clean technologies, and tailored plans for rural entrepreneurs.
We are also investing in better impact tracking systems to measure carbon savings, energy efficiency, and social outcomes. Our long-term goal is to support one million customers and enable over ten million metric tons of carbon savings. With a focused strategy and a strong technology foundation, Ecofy is ready to drive the next phase of green financial inclusion.
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