Avaana Capital, a venture capital firm focused on climate technology, has raised USD 135 million for its new Avaana Climate and Sustainability Fund. The fund aims to support early-stage companies that are developing new technologies to tackle climate change and help India on its journey to becoming net zero.
Areas of Investment
The Avaana Climate and Sustainability Fund will invest in startups working in sectors that contribute the most to India’s carbon emissions. These sectors include:
- Energy and Resource Management
- Mobility and Supply Chains
- Sustainable Agriculture and Food Systems
These areas make up 90% of India’s carbon emissions, and the fund’s focus is to support innovations that can help reduce environmental impact and build a more sustainable future.
Commitment to Climate Action
Anjali Bansal, Partner at Avaana Capital, emphasized the importance of this new fund, saying that India is at a critical point in its efforts to address climate change. She added that support from leading global and local investors shows how important innovation is in driving meaningful climate action. This fund will help create the next generation of climate-first companies that can transform key industries in India.
Support from Global Investors
The fund has received backing from several major institutional investors, including the world’s largest climate fund, the Green Climate Fund (GCF), which made its first direct investment in India. Other key supporters include the US International Development Finance Corporation (DFC), the UK Government through the UK-India Development Cooperation Fund (UKIDCF), the Self Reliant India Fund (SRI), Small Industries Development Bank of India (SIDBI), the Azim Premji Trust, and large corporations.
Innovation for a Low-Carbon Future
Mateo Goldman, Senior Vice President for Investments at DFC, said that their investments around the world are focused on helping emerging economies like India. The DFC’s investment in Avaana’s climate fund is aimed at supporting early-stage startups that are developing climate-resilient solutions. This fund will help speed up India’s move toward a low-carbon economy, which is essential for global sustainable development.
