As per two people familiar with the development, Swiss impact investor responsAbility Investments AG has signed a $15 million funding agreement with non-bank lender Electronica Finance to promote green financing in India as part of its sustainability goal.
According to managing director Shilpa Pophale, the Pune-based non-banking finance company, which is part of the SRP Electronica group, the funding will be used to finance energy-efficient machines and promote rooftop solar installation.
The NBFC received $7.5 million from responsAbility last month and plans to draw the remainder later this year, she said.The fund was raised at a 11.4% yield.
Supported by the Small Industries Development Bank of India, Electronica Finance grew its assets under management threefold in the past half a decade. Its AUM surpassed Rs 3000 crore mark as compared with Rs 1033 crore six years back. It earned Rs 42 crore net profit in FY23.
The company provides machine loans, business loans, loans against property, as well as working capital Loan and loans to micro enterprises. Business loans and machine loans comprise two-third of its book.