India’s Ashv Finance scores $10 million from Encourage Capital for rooftop solar lending

ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, December 11 — Mumbai-based Ashv Finance, part of India-based impact investor Aavishkaar Group, provides flexible, collateral-free loans to micro, small and mid-sized enterprises in 15 Indian states.

The non-banking financial institution, or NBFC, has raised $10 million from Encourage Capital to make a “foray into rooftop solar finance, something we have been contemplating for a while,” said Ashv’s Nikesh Kumar Sinha. Ashv aims to deploy 3.9 billion rupees (about $47 million) in rooftop solar loans to micro and small businesses over five years.

India’s energy transition

Encourage Capital made the investment through its Solar Finance equity fund for financial institutions in India providing loans to small businesses for rooftop solar installations.

In May, Encourage Capital backed Mumbai-based Svakarma Finance to launch small-business loans for rooftop solar. India’s government has set an ambitious target to generate 500 gigawatts of renewable energy by 2030.