Avaana Climate and Sustainability Fund raises $135 million to fuel climate-tech start-ups in India
Avaana Capital, India’s leading climate-focused venture capital firm, has announced the final close of its Avaana Climate and Sustainability Fund, securing a total fund size of $135 million. This makes it the largest institutional climate-focused venture capital fund in India.
The Avaana Climate and Sustainability Fund aims to invest in early-stage companies that use technology to develop scalable solutions for climate mitigation, adaptation, and resilience, advancing India’s progress toward net-zero emissions. The fund primarily targets three sectors that account for 90 per cent of India’s carbon emissions: Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems.
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The fund has garnered strong backing from renowned institutional investors, including the Green Climate Fund (GCF), which made its first direct investment in India. Other notable investors include the US International Development Finance Corporation (DFC), the UK-India Development Cooperation Fund (UKIDCF), the Self Reliant India (SRI) Fund, the Small Industries Development Bank of India (SIDBI), the Azim Premji Trust, and several major corporations.
As one of the world’s most climate-vulnerable nations, India plays a critical role in global climate solutions. Estimates suggest the country will require investments exceeding $10 trillion by 2070 to meet its net-zero goals and tackle the rising risks of climate change. Avaana’s investments are designed to address this pressing need by driving innovation to reduce emissions, enhance resource efficiency, and accelerate the transition to a low-carbon economy.
Anjali Bansal, Partner, Avaana Capital, commented, “India is at a pivotal moment in its climate action journey. The support we’ve received from leading global and domestic institutional investors underscores the importance of innovation in driving climate action and delivering long-term impact. The Avaana Climate and Sustainability Fund will help build the next generation of climate-first companies to transform key sectors and make meaningful progress toward a sustainable future.”
Kavita Sinha, Director, Division of Private Sector Facility, Green Climate Fund, added, “Avaana’s focus on transformative technologies in critical sectors like food and agriculture, energy, mobility, and similar climate ventures will provide climate aligned solutions to people and support India’s climate ambitions.”
Sally Taylor, Minister Counsellor, British High Commission, said, “The UK Government’s development investments in India support innovative Indian businesses to develop products and services that will accelerate sustainable, inclusive growth. We are pleased to be deploying our funds through Avaana to enable them to back those pioneering enterprises harnessing technology to develop new climate solutions to address the climate crisis.”
R K Singh, Chief General Manager, SIDBI added, “At SIDBI, our focus has been on creating pathways for climate responsive enterprise eco system to thrive in India. The Avaana Climate and Sustainability Fund aligns perfectly with our mission by supporting innovative, climate-tech start-ups that are key to India’s transition to a sustainable, low-carbon economy.”