NBFC startup Metafin secures $5 million to catalyse solar adoption in rural India

Metafin, a cleantech-focused NBFC, on Wednesday said it has raised $5 million in equity funding, led by Prime Venture Partners and Varanium Capital.
Metafin, which specialises in rooftop solar loans for semi-urban and rural MSMEs, provides financing and installation solutions through its network of lending and installer partners.

In a release, Metafin said it plans to utilise funds to expand across states, grow its loan book, enhance its technology and IoT stack, and hire key talent.

"In addition to our climate impact, every plant we enable helps India increase energy inclusion, broaden financial inclusion, and improve livelihoods. Our goal is to finance over one million such projects in the next 5 years," Metafin Founder and CEO Sandeep Chopra said.

India has set a 280 GW target for solar adoption by 2030.

Metafin has enabled almost 1,000 installations in UP and Bihar (14+ MWs), of which 90 percent are off-grid, replacing diesel directly.

These installations, the company said, have helped avoid 147 million kg of CO2 to date.

Prime Venture Partners is an early-stage VC fund started in 2012. It has created companies, including fintechs like Niyo, KredX, OTO, Knight Fintech, Finagg, and Navadhan.

Varanium Capital is a global asset management firm which has USD 1.4 billion in AUM. It has a fintech-focused fund and has so far invested in 14 startups, including the likes of Easebuzz, Bharat Housing Network, GetVantage, Riskcovry, and Finvu.