Metafin secures $5 million funding from Prime Venture Partners, others

Clean tech focused non-banking finance company (NBFC) Metafin has raised $5 million in an equity funding round led by Prime Venture Partners and Varanium Capital, according to a statement.

The Gurugram-based company will use the funds to expand across states, improve its loan book, enhance its technology and IoT stack, and hire new talent, it said.

“With every plant that we enable, we help to meet the goals of access to energy, financial inclusion, increase in livelihood and reversal of climate change. Today we are financing around 1000 projects, but we want to do 1 million such projects in the next five to seven years in India,” Sandeep Chopra, founder and CEO of Metafin, told ET.


The company, which is largely focused on Uttar Pradesh and Bihar, is planning to go deeper into these states and expand into Jharkhand and Rajasthan with this fundraise in the next 12 months, he added.

Founded in 2019 by Chopra and Aditya Shah, Metafin specialises in providing rooftop solar loans to small businesses in rural and semi urban areas through its network of lending and installer partners. The company aims to address the market gap of providing affordable power solutions to over 5 million rural businesses.

The company is in advanced talks with banks and other financing partners to collaborate on further extending lending to this segment, Chopra said.

Chopra cited lack of awareness at the grassroot level and the limited access to the target customers without escalating costs as major challenges involved in the transition from fossil fuels to solar energy in rural India.

The company has raised about $7 million in total funding as of now and has about $2.5 million of assets under management (AUM). It aims to reach $12-15 million AUM in the next 12 months.

Metafin has been supported by partners including IFC, 9Unicorns, Unitus Capital, Harvard i-Labs, Venture Catalysts and Smart Power India.