Mumbai: Avaana Capital, a climate-focused venture capital firm, on Wednesday announced the final close of its Avaana Climate and Sustainability Fund with a total fund size of $135 million.
The Fund is committed to investing in early-stage companies that leverage technology to create scalable solutions for climate mitigation, adaptation, and resilience accelerating India’s journey to net zero. The fund focuses on three core sectors that account for 90% of India’s carbon emissions: Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems.
The fund has attracted strong support from the Green Climate Fund (GCF) making its first direct investment in India.
Other participants included the US International Development Finance Corporation (DFC), UK Government through UK- India Development Cooperation Fund (UKIDCF), the Self Reliant India Fund and Small Industries Development Bank of India, Azim Premji Trust, and several large corporations.
“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,” said Anjali Bansal, Partner, Avaana Capital.
Kavita Sinha, Director, Division of Private Sector Facility, Green Climate Fund said that Avaana’s focus on transformative technologies in critical sectors will provide climate-aligned solutions to people and support India’s climate ambitions and this partnership will would accelerate India’s net-zero journey and create scalable models for other emerging markets facing similar challenges.
According to the release, India will need investments exceeding $10 trillion by 2070 to meet its net-zero targets and address the growing risks of climate change. It said that Avaana’s investments were designed to meet this urgent need by driving innovation that reduces emissions, improves resource efficiency, and accelerates the transition to a low-carbon economy.
“DFC’s support for Avaana’s climate fund is a great model to push early-stage startups in India, dedicated towards new technologies and innovation, and deliver impactful, climate-resilient solutions,” said Mateo Goldman, Senior Vice President for Investments at the US International Development Finance Corporation (DFC).
He added that this would help to accelerate India’s transition to a low-carbon economy and thereby contribute to the global push for sustainable development.
Sally Taylor, Minister Counsellor, British High Commission said that the UK Government’s development investments in India support innovative Indian businesses to develop products and services that will accelerate sustainable, inclusive growth.
