Electronica finance ltd collaborates with encourage capital to expand into rooftop solar financing for MSME

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Pune-based Electronica Finance Ltd (EFL) raised over Rs. 100 cr ($15 million) through issuance of Compulsorily Convertible Preference Shares (CCPS) to finance business growth in the existing product segments and to fund expansion into the new rooftop solar financing business.

Encourage Capital, headquartered in New York(one of the key promoters, is an impact investment and advisory firm that has taken a minority stake in EFL through its fund, Encourage Solar Finance, L.P. Encourage Capital was formed through a combination of Wolfensohn Fund Management, founded by former World Bank President, James D. Wolfensohn, and EKO Asset Management. The investment banker to the transaction was Edelweiss Financial Services.

Shilpa Pophale, MD, Electronica Finance Ltd, said, “The incremental funds raised will enable us to cater to the MSME segment in a more vigorous way as well as grow our business in machinery financing through various funding options. It will also fund our foray into the new rooftop solar financing business for MSMEs.”

Ameya Bijoor, Partner and Co-head, Climate Finance and Financial Inclusion, Encourage Capital said, “EFL has a unique and scalable platform that supports MSMEs in financing their businesses, from energy efficient equipment finance to industrial property loans to clean energy investments. We are excited to be EFL’s first institutional equity partner for growth and to support EFL in launching a new business focusing on rooftop solar finance for MSMEs.”

Till date, EFL has served over 7,500 customers and has a presence in 15 states through 55 branches and over 450 employees. As on September 30, 2019, the company’s assets under management (AUM) were close to Rs. 1,350 crores. The company focuses on assessment-based financing, through varied products like machine loans, business loans, secured loans for micro enterprises etc.

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