Ashv Finance Secures $10 Million from Encourage Capital for Rooftop Solar MSME Projects

Ashv Finance, part of the Aavishkaar Group, has recently secured a significant investment of $10 million from Encourage Capital. This funding is earmarked for a pivotal venture in the micro, small, and medium enterprise (MSME) sector in India, focusing on rooftop solar financing. This move represents a strategic shift towards sustainable energy solutions, reflecting a broader trend in the financial sector.

Here are the key details of this development:

  1. Investment and Strategy: The $10 million investment from Encourage Capital is part of Ashv Finance’s Series E funding round. This capital injection is intended to expand Ashv Finance’s footprint across India and to launch a significant initiative in financing rooftop solar projects for micro and small businesses.
  2. Impact on the MSME Sector: Ashv Finance, headquartered in Mumbai, is a non-banking financial company (NBFC) known for providing cash-flow-based business loans to MSMEs. The company’s focus on collateral-free, flexible financing has been a boon for small and growing businesses, helping them unlock growth potential.
  3. Ambitious Goals: Ashv Finance aims to deploy the funds to disburse loans totaling Rs 390 crore (approximately $47 million) 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.
  4. Supporting India’s Energy Transition: This funding aligns with India’s ambitious target of generating 500 gigawatts of renewable energy by 2030. By financing rooftop solar projects, Ashv Finance joins other financial institutions contributing to India’s energy goals.
  5. Encourage Capital’s Role: Encourage Capital, an impact investment and advisory firm, has expressed enthusiasm about partnering with Ashv Finance. They have made the investment through their Solar Finance equity fund, which is dedicated to financial institutions in India that provide loans to small businesses for rooftop solar installations.
  6. Expanding Reach: Ashv Finance has a presence in more than 180 locations across 15 Indian states, and with this new capital, they plan to deepen their presence across the country.
  7. Tech-Led Model: Ashv Finance’s approach is tech-led and data-driven, focusing on empowering the underserved MSME market. Their new venture in rooftop solar financing is their inaugural climate finance product.
  8. Sectoral Focus: The initiative is part of a broader trend where MSME lenders are supporting businesses adopting solar energy for sustainability. It reflects the growing recognition of solar energy’s reliability and its crucial role in achieving renewable energy targets.
  9. Advisor’s Role: Intellecap acted as the sole advisor to Ashv Finance for this transaction, playing a significant role in advising and strengthening Ashv Finance’s ability to support the credit needs of small and growing businesses.
  10. Broader Industry Initiatives: This strategic funding follows similar initiatives by other entities in the financial sector, further highlighting the sector’s growth and the supportive regulatory structures for solar energy.



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