Strategic Funding for Rooftop Solar Expansion
Ashv Finance, the Mumbai-based cash-flow focused lender to Micro, Small, and Medium Enterprises (MSMEs), and a part of the NBFC Aavishkaar Group, has secured $10 million in funding from Encourage Capital. The funds are earmarked for the expansion of Ashv Finance’s footprint across India and the launch of a significant initiative—financing rooftop solar projects for micro and small businesses.
Encourage Capital’s Commitment to Impact
Encourage Capital, an impact investment and advisory firm with a focus on the financial sector, expressed enthusiasm about partnering with Ashv Finance. Tarun Arora, Partner at Encourage Capital, highlighted Ashv Finance’s tech-led and data-driven lending model, aiming to empower the underserved MSME market. The investment aligns with Ashv Finance’s commitment to launching rooftop solar financing as its inaugural climate finance product.
Ambitious Plans and Sectoral Focus
Ashv Finance aims to deploy the raised funds to strengthen its nationwide presence and disburse loans totaling Rs 390 crore to micro and small enterprises involved in rooftop solar ventures over the next five years. The lender aspires to scale its Assets Under Management (AUM) to Rs 1,800-2,000 crore.
MSMEs Embracing Solar Energy
The funding aligns with the broader trend of MSME lenders supporting businesses adopting solar energy for sustainability. Ashv Finance joins the ranks of financial institutions contributing to India’s energy goals through the financing of rooftop solar projects. The move reflects the growing recognition of solar energy’s reliability and its crucial role in achieving renewable energy targets.
Industry Initiatives for Solar Adoption
This strategic funding follows similar initiatives by other entities in the financial sector, such as Tata Power Solar Systems partnering with SIDBI and Yes Bank launching the YES KIRAN program for MSMEs installing solar panels. The sector’s growth, as highlighted by Power Minister R.K. Singh, hinges on supportive regulatory structures for power generation and transmission within the solar energy domain.
