Solfin raises Rs 280 crore for clean energy financing expansion

Solfin Sustainable Finance has raised Rs 280 crore in a recently closed funding round and reported profitability within its first full year of operations.

The Gurugram-based non-banking financial company (NBFC) focuses on financing rooftop solar, commercial and industrial (C&I) renewable energy projects, solar supply chains, and distributed clean energy systems. The company was founded by former American Express executives Gautam Kaushik and Pramod Mahanta and is backed by Waaree Group through Waaree Sustainable Finance Pvt. Ltd. 

Solfin said its business model is built around financing India’s energy transition through digital and specialised lending products.

The company operates a digital-first underwriting system for reducing loan approval timelines for residential rooftop solar and C&I renewable energy projects. According to the company, residential solar loan approvals have been reduced from weeks to days, while financing turnaround times for industrial projects have been brought down to single-digit timelines.

The platform had earlier announced crossing Rs 100 crore in solar loan disbursals within nine months of starting operations in August 2024.

Solfin’s distribution network includes partnerships with engineering, procurement and construction (EPC) firms, dealers, original equipment manufacturers (OEMs), and manufacturers, including Waaree Energies Limited. The company said its partner network has expanded to more than 1,200 partners across Tier 2 and Tier 3 markets. 

The newly raised capital will be used for artificial intelligence-driven credit underwriting, portfolio monitoring systems, collections infrastructure, and expansion into additional states.

The company is also evaluating opportunities in electric vehicle financing, battery energy storage systems, and climate technology financing segments.

India has set a target of 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070. Solfin said policy support, including the PM Surya Ghar Muft Bijli Yojana, and rising demand for distributed solar systems are increasing financing requirements across the clean energy sector.

The company has also entered into international financing partnerships, including a co-lending arrangement with a Japanese financial institution.

The featured photograph is for representation only.