Metafin Raises $10 Mn in Series A Funding to Boost Clean Energy Adoption

Metafin, a non-banking finance company (NBFC) focused on solar loans, has raised $10 million in a mix of equity and debt funding in its Series A round, led by Vertex Ventures Southeast Asia and India, reported ET.

Other participants include venture debt firm Northern Arc, AU Small Finance Bank and existing investors such as Prime Venture Partners and Varanium Capital.

Metafin cofounder and director Aditya Shah told Inc42 that the funds will primarily be used to expand the NBFC’s lending business and achieve 10,000 solar installations in rural India. The company also plans to invest in its technology infrastructure and strengthen its senior leadership team.

Focus on Rural India

“Today, we have financed over 3,200 installations in 2,700 villages. The ambition now is to scale it up to about 10,000 installations and 8,000 villages across the states in which we are operating… This is largely carrying on to our strategy and theme around energy access in rural India,” cofounder Sandeep Chopra told ET.

Founded in 2019, Sandeep Chopra and Aditya Shah, Metafin provides solar loans to small businesses and households in rural and semi-urban areas through a network of lending and installation partners, according to ET. The company uses real-time energy data to facilitate scalable financing.

Currently, Metafin generates about 80-85% of the revenue from Uttar Pradesh, with Bihar contributing additional 10-12%, according to YourStory. With this funding, the company plans to expand into regions like Jharkhand, Chhattisgarh, Odisha and Madhya Pradesh.

“Metafin’s technology-driven approach, along with their grassroots understanding of rural entrepreneurs and deep knowledge of credit underwriting, positions them as category leaders in the solar asset financing space,” Nikhil Marwaha, senior executive director at Vertex Ventures Southeast Asia and India told ET.

As of March, Metafin has an annual revenue run rate of Rs 22 crore and assets under management (AUM) worth Rs 81 crore, reported ET.

The company is also in talks with banks and other financing partners to further extend its lending services to its target user segment. In February 2024, Metafin raised $5 million in an equity funding round led by Prime Venture Partners and Varanium Capital.