Pune-based Electronica Finance Ltd (EFL) has raised over Rs 100 crore ($15 million) through the issuance of Compulsorily Convertible Preference Shares (CCPS). According to a statement released by the company, the funds will be utilised by EFL for its business growth in the existing product segments and expansion into its new rooftop solar financing business.
Incorporated in 1990, EFL is a part of the SRP Electronica Group and a pioneer in the field of machine finance. It engages in machinery and other asset financings for Micro, Small and Medium Enterprises (MSMEs).
Shilpa Pophale, Managing Director, Electronica Finance Ltd, said,
“EFL has been growing at a rapid pace and continues to focus on the MSME sector, which despite being the new engine of growth, has been facing numerous challenges including availability of finance. The incremental funds raised will enable us to cater to the MSME segment more vigorously, 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. We look forward to a long association with Encourage Capital, who have expertise in financial inclusion, clean energy finance, and other environmental-related finance areas.”
New York-headquartered Encourage Capital (one of the key promoter), is an impact investment and advisory firm that has taken a minority stake in EFL through its fund, Encourage Solar Finance, L.P.
Commenting on the investment, Ameya Bijoor, Partner and Co-head, Climate Finance and Financial Inclusion, Encourage Capital, said,
“EFL has a proven track-record of providing innovative financing solutions for MSMEs for nearly 30 years. EFL has a unique and scalable platform that supports MSMEs in financing their businesses, from energy-efficient equipment finance, industrial property loans to the 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 focussing on the rooftop solar finance for MSMEs.”
(Edited by Suman Singh)