New Delhi, June 3 -- Solfin Sustainable Finance, which counts solar module manufacturer Waaree Group among its backers, is focussing on expanding its loan book and may raise fresh capital to support growth, VCCircle has learnt.
The company also plans to nearly triple its workforce in the financial year ending March 2027, a senior company executive said.
"We see a very strong tailwind in the renewable sector, specifically in the asset classes of solar and battery energy storage systems. We are targeting 4-5x growth in our AUM this year," founder and director Gautam Kaushik told VCCircle. "We also plan to increase our headcount to 250-350 by the end of FY27 from around 130 in March 2026. It is going to be across functions: sales, marketing, technology and credit," he added.
Solfin aims to expand the loan book to Rs 1,000 crore ($104 million) by the end of FY27 from about Rs 170 crore currently.
The company will focus on financing behind-the-meter renewable energy installations such as rooftop solar systems, battery storage solutions, and electric vehicle charging infrastructure for commercial and industrial customers. Its customer segment includes commercial and industrial establishments such as factories, restaurants, schools, and colleges.
The company also offers working capital finance to solar supply chain businesses through anchor-backed dealer financing and dealer-backed retailer financing.
"We will continue to focus on the solar segment, and will definitely introduce a battery energy storage system as part of the solar offering because they are complementary. Apart from these two, we do not envisage a significant shift to an asset class or a new customer segment," Kaushik said.
Background
The Mumbai-based company is backed by Waaree Sustainable Finance, part of one of India's largest solar manufacturing groups.
Founded in December 2022 by former American Express executives Gautam Kaushik and Pramod Mahanta, Solfin received its NBFC licence in 2024 after acquiring Mumbai-based Dhanvikas Fiscal Services. The captive NBFC resumed disbursements in the second quarter of FY25.
Solfin and its holding company, XS Finance and Investment, posted consolidated revenue of Rs 14.2 crore in FY26 and have already crossed an annual recurring revenue (ARR) run rate of over Rs 30 crore, VCCircle has learnt. Earnings before tax stood at Rs 40 lakh during the year.
In May, Solfin raised Rs 280 crore (around $29 million then) in a round led by the Waree family. Other investors, including Nivesha Ventures, also participated, VCCircle has learnt. Kaushik, however, did not disclose individual contributions.
The company will use the funds to expand its loan book, it said.
Separately, Solfin may raise additional equity in the last quarter of the current financial year to fuel the next phase of growth.
"While it is too early to say, the next funding round will be significantly larger than the previous one. We may need up to Rs 1,000 crore to meet the demand we are seeing," Kaushik said, adding that the company will start working on the contours of the upcoming round from August.
Published by HT Digital Content Services with permission from VC Circle.