Solar loans-focussed non-banking finance company (NBFC) Metafin has raised $10 million in a mix of equity and debt funding, led by Vertex Ventures Southeast Asia and India.

Existing investors Prime Venture Partners and Varanium Capital also participated in the Series A round, along with financial institutions Northern Arc and AU Small Finance Bank.

The fresh capital will be used to deepen Metafin’s presence in existing markets, expand into new states, and strengthen its technology, credit, and service infrastructure. Founded in 2019 by Sandeep Chopra and Aditya Shah, Metafin specialises in providing solar loans to small businesses and households in rural and semi-urban areas through a network of lending and installation partners. The company said it uses real-time energy data to facilitate scalable financing.

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.

“Today, we have financed over 3,200 installations in 2,700 villages. The ambition now is to scale it up to about 10,000 installations and 8,000 villages across the states in which we are operating… This is largely carrying on to our strategy and theme around energy access in rural India,” cofounder Sandeep Chopra told ET.

As of March, Metafin has an annual revenue run rate of Rs 22 crore and assets under management (AUM) worth Rs 81 crore.

The company is also in talks with banks and other financing partners to further extend its lending services to its target user segment. In February 2024, Metafin raised $5 million in an equity funding round led by Prime Venture Partners and Varanium Capital.

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.