Metafin, a non-banking finance company (NBFC) specializing in solar loans, raised $10 million in Series A funding led by Vertex Ventures SEA & India. Existing investors Prime Venture Partners and Varanium Capital also participated, along with Northern Arc and AU Small Finance Bank.
The funding will be used to expand into new states (Jharkhand, Chhattisgarh, Odisha, and Madhya Pradesh), strengthen infrastructure, and deepen its presence in Uttar Pradesh and Bihar.
Metafin, founded in 2019, has financed over 3,200 solar installations in 2,700 villages. They aim to scale this to 10,000 installations and 8,000 villages. As of March, the company had an annual revenue run rate of Rs 22 crore and assets under management (AUM) worth Rs 81 crore. They are also exploring partnerships with banks to expand lending services.
The Indian government's 80% budget increase for the Pradhan Mantri Surya Ghar Muft Bijli Yojana (rooftop solar program) to Rs 20,000 crore for FY26 provides a positive outlook for the solar sector.
Vertex Ventures highlighted Metafin's technology-driven approach and understanding of rural markets as key factors in their investment decision.
Currently, Metafin is focussed on Uttar Pradesh and Bihar. With this funding, the company plans to expand into regions like Jharkhand, Chhattisgarh, Odisha, and Madhya Pradesh.
In a recent boost for the solar sector, the central government increased the budget for the Pradhan Mantri Surya Ghar Muft Bijli Yojana by 80% to Rs 20,000 crore for FY26. This increase is part of the government’s major push for its flagship rooftop solar programme, announced last year.
“Metafin’s technology-driven approach, along with their grassroots understanding of rural entrepreneurs and deep knowledge of credit underwriting, positions them as category leaders in the solar asset financing space,” said Nikhil Marwaha, senior executive director at Vertex Ventures Southeast Asia and India.
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