Metafin raises Funds

Venture Garage advises Metafin in securing $5 Million raise from Prime Venture Partners & Varanium Capital

12 February 2024, Gurugram: Metafin, a clean tech-focused non-banking finance company (NBFC), has successfully secured $5 million in a recent funding round. Prime Venture Partners and Varanium Capital led the investment, Venture Garage was the financial advisor to Metafin in this transaction.

Founded in 2019 by Sandeep Chopra and Aditya Shah, Metafin is serving the needs of over 5 million MSMEs with 1 – 150KW solar rooftop installation and financing projects, leveraging its extensive network of lending and installer partners to power financial inclusion and energy access till the last remote villages of India. Metafin’s unique project led financing approach has a three fold impact on communities with sustainable solutions that positively impact the environment, energy infrastructure and financial inclusion of semi-urban and rural communities.

“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

Metafin has enabled almost 1,000 installations in UP & Bihar (14+ MWs) of which 90% are off-grid, replacing diesel directly. These installations have helped avoid 147 million Kgs of CO2 to date. This success showcases the effectiveness of Metafin’s scalable, 360-degree approach to cleantech financing, focusing on understanding the end borrower, the solar asset, underwriting and collections.

“Access to credit is undeniably pivotal in driving the widespread adoption of renewable energy solutions, and Metafin’s pioneering efforts in this realm are truly inspiring. It speaks volumes about the impact Metafin is poised to make in advancing sustainable practices globally.“
-Vineet Sagar, Managing Partner of Venture Garage

India has set a 280GW target for solar adoption by 2030, and Metafin plays a pivotal role in achieving this goal by facilitating retail-scale solar projects. By providing tailored financing solutions and ensuring the quality and reliability of each solar project, Metafin contributes to sustainable energy adoption and aligns with India’s mission on decarbonization. The company is actively engaging with banks and other financing partners to collaborate on lending to this segment, with each loan providing ESG impact at multiple levels while delivering attractive returns on secured assets.

“Rural solar is undeniably a game-changer, capitalizing on the compelling cost advantage over over conventional power sources. Metafin is at the forefront of financing rooftop solar installation, ushering in a new era of sustainable energy in rural India. The triple benefits are profound – not only curbing carbon emissions but also yielding significant cost savings for small businesses while reducing dependency on diesel generators, a pivotal step in cutting fuel imports. The fact that these loans are in RBI’s PSL mandate is an added benefit. The potential for growth is immense, aligning with Varanium Capital’s commitment to catalyzing impactful ventures.”
– Aparajit Bhandarkar, Partner at Varanium Capital.

Metafin’s growth has been powered by backing of a network of investors and partners including IFC, 9Unicorns, Unitus Capital, Harvard i-Labs, Venture Catalysts, VG Angels and Smart Power India.