Metafin Bags $10 Mn to Scale Rural Solar Financing in India
In a significant development for the renewable energy sector in India, Metafin, a tech-driven solar financing startup, has raised $10 million in Series A funding led by Vertex Ventures. This capital injection will enable Metafin to expand its operations into new states, enhance its credit technology, and boost rural solar adoption, thereby bridging the energy gap in rural India.
Metafin’s innovative approach to solar financing has already made a significant impact, with over 3,500 projects in 2,500 villages across the country. The startup’s mission is to promote clean, cost-effective power for micro, small, and medium-sized enterprises (MSMEs) and farmers, who often lack access to traditional financing options.
The funding round, which marks a significant milestone for Metafin, will enable the startup to further scale its operations and reach a wider audience. The capital will be used to expand into new states, including Madhya Pradesh, Rajasthan, and Gujarat, where there is a high demand for clean energy solutions.
“We are thrilled to have Vertex Ventures on board as our lead investor,” said Abhishek Rimal, Co-founder and CEO of Metafin. “Their expertise and network will be invaluable in helping us achieve our vision of empowering rural India with clean energy. This funding will enable us to accelerate our growth and make a meaningful impact on the lives of millions of people.”
Metafin’s credit technology is a key differentiator in the market. The startup uses advanced algorithms and machine learning to assess the creditworthiness of rural borrowers, providing them with access to financing that may not be available through traditional channels. This approach has enabled Metafin to achieve a default rate of less than 2%, which is significantly lower than the industry average.
The rural solar financing market in India is growing rapidly, driven by the government’s efforts to increase renewable energy capacity and reduce carbon emissions. The Indian government has set a target of installing 40 gigawatts of solar power capacity by 2022, and the rural sector is expected to play a key role in achieving this goal.
Metafin’s solution is well-positioned to benefit from this growth, as it provides a unique combination of financing and technology to rural entrepreneurs and farmers. The startup’s platform is designed to be user-friendly and accessible, with a mobile app that allows borrowers to apply for financing and track their loan status.
In addition to expanding its operations into new states, Metafin plans to use the funding to enhance its credit technology and develop new products and services. The startup is also exploring opportunities to partner with other players in the renewable energy ecosystem, including solar equipment manufacturers and installers.
“The rural solar financing market in India is vast and underserved,” said Chua Yeong Tay, Partner at Vertex Ventures. “We believe that Metafin has a unique solution that can make a significant impact on the lives of rural entrepreneurs and farmers. We are excited to be a part of their journey and support their growth plans.”
In conclusion, Metafin’s $10 million funding round is a significant vote of confidence in the startup’s innovative approach to rural solar financing. With this capital injection, Metafin is well-positioned to scale its operations and make a meaningful impact on the lives of millions of people in rural India.
Source:
https://ascendants.in/business-stories/metafin-raises-10m-vertex-ventures-rural-solar-financing/
