Avaana Capital Secures $135 Million for Climate Fund to Drive Climate-Tech Startups

Avaana Capital Secures $135 Million for Climate Fund to Drive Climate-Tech Startups

Avaana Capital, a prominent climate-focused venture capital firm in India, has successfully raised $135 million for its Avaana Climate and Sustainability Fund, with significant backing from global institutional investors such as the Green Climate Fund (GCF). This infusion of capital is aimed at supporting climate-tech startups in critical sectors to propel India's efforts towards a sustainable future.

Anjali Bansal, partner at Avaana Capital, expressed her gratitude for the strong support from both global and domestic investors, emphasizing the importance of innovation in combating climate change. "The Avaana Climate & Sustainability Fund will help build the next generation of climate-first companies to transform key sectors and make meaningful progress toward a sustainable future," Bansal said in a press statement.

The fund will focus on three core areas that account for 90% of India's carbon emissions: Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems. These sectors are critical to India’s net-zero strategy and global climate solutions.

India, being one of the most climate-vulnerable nations with the world's largest population and the sixth-largest economy, has a vital role to play in addressing climate change. According to Bansal, estimates suggest the country will require over $10 trillion in investments by 2070 to meet its net-zero targets and mitigate climate risks.

In a milestone development, the Green Climate Fund (GCF), the world's largest climate fund, made its first-ever investment in an Indian climate venture fund through Avaana. Kavita Sinha, Director of the Division of Private Sector Facility at GCF, highlighted that Avaana's focus on transformative technologies in critical sectors such as food and agriculture, energy, and mobility aligns with GCF's mission. She added that this partnership would accelerate India's net-zero journey while providing scalable solutions for other emerging markets facing similar challenges.

In addition to GCF, other major investors in the fund include the US International Development Finance Corporation (DFC), the UK Government through the UK-India Development Cooperation Fund (UKIDCF), the Self-Reliant India (SRI) Fund, the Small Industries Development Bank of India (SIDBI), and the Azim Premji Trust.