Metafin

Metafin is a clean energy lender that aims to expand energy access across Tier II+ India through financing, distribution and clean energy expertise. Its core market is underserved semi-urban and rural customers, where there is little competition.

It simplifies rooftop solar financing with turnkey loans for retail and commercial and industrial borrowers, with project quality safeguards built in. Its main goal is to replace the use of diesel.

We invested in Metafin for several reasons together. It focuses on underserved semi-urban and rural customers across Tier II+ India, a segment with little competition, and offers turnkey rooftop solar loans to retail and commercial and industrial borrowers with project quality safeguards built in. Its goal of replacing diesel with solar gives it a clear purpose. The team combines more than 20 years in rooftop solar and banking, including leading Azure Power’s distributed solar business, with over a decade in fintech, private equity and venture capital, supported by a senior advisor with over 30 years in finance and sustainability.

The company also addresses a large opportunity. Micro-enterprises in rural Uttar Pradesh, Bihar, Jharkhand and Odisha mostly rely on diesel and have limited access to reliable electricity. Rooftop solar is an attractive alternative, but limited access to financing is the biggest barrier. The opportunity in these four states is estimated at over 9 GW and $6 billion, and the overall solar financing opportunity at $98 billion.