Climate-focused VC firm Avaana Capital raises $70 mn in first funding round

Indian climate-focused venture capital firm Avana Capital said on Wednesday it had raised $70 million in its first funding round as it seeks to invest in clean energy and climate technology.

This is the first closing in the Avaana Climate and Sustainability Fund, India’s first technology-led climate fund, which means he can start investing in companies while raising capital for his own fund.

The fund has garnered interest from both local and international institutions, including the Indian Small Industries Development Bank of India (SIDBI) and the UK India Development Cooperation Fund (UKIDCF).

The company is targeting a range of $100 million to $125 million for the fund, which will focus on investments in three sectors – energy transformation and resource management; mobility and supply chains; Sustainable agriculture and food systems.

According to a report by India’s central bank, the country will spend an estimated 85.6 trillion rupees ($1.04 trillion) by 2030 to adapt its various industries to be climate-change compliant.

Anjali Bansal, co-founder of the Mumbai-based firm, said the Avana Climate and Sustainability Fund evaluates more than 200 new climate opportunities every quarter.

“With a significant global capital influx, supportive policies and corporate interest, and a wealth of entrepreneurial talent in the climate sector, the story of climate technology in India is advancing rapidly,” it said in a statement.

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First published: June 21, 2023 | 6:07 a.m ist