Climate Insider Brief:
- Avaana Capital raised $135 million for its Avaana Climate & Sustainability Fund, backed by leading institutional investors, including the Green Climate Fund’s (GCF) first venture investment in India, to fuel climate-focused innovation.
- The fund will target three high-emission sectors — Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems — which account for around 90% of India’s carbon footprint, aiding India’s net-zero goals.
- Investors like the U.S. DFC, UKIDCF, SIDBI, and Azim Premji Trust demonstrate international support for India’s climate ambitions, with Avaana’s fund set to model climate solutions for other emerging markets.
Avaana Capital, India’s leading climate-focused venture capital firm, announced Wednesday that it has successfully raised $135 million for its Avaana Climate and Sustainability Fund. This capital infusion, backed by prominent institutional investors, includes the Green Climate Fund (GCF) – marking GCF’s first venture fund investment in India. The fund will support the next generation of climate-focused companies across India, with a specific emphasis on sectors critical to the nation’s carbon reduction goals.
“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,” said Anjali Bansal, partner at Avaana Capital. “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.”
The Avaana Climate & Sustainability Fund will channel resources into three high-emission sectors that together represent around 90% of India’s total carbon footprint: Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems. By targeting these areas, the fund aims to facilitate substantial reductions in greenhouse gas emissions, aligning with India’s net-zero ambitions and broader climate goals.
India, classified among the world’s most climate-vulnerable nations, faces mounting pressure to adapt and invest in climate solutions as the sixth-largest economy with the largest population. According to Bansal, estimates indicate that India requires over $10 trillion in investment by 2070 to meet its net-zero targets and mitigate the increasing impacts of climate change.
Kavita Sinha, Director of the Division of Private Sector Facility at the Green Climate Fund, emphasized the alignment between Avaana’s investment focus and GCF’s mission. “Avaana’s focus on transformative technologies in critical sectors like food and agriculture, energy, mobility, aligns with GCF’s vision of catalysing meaningful climate solutions. This partnership will accelerate India’s net-zero journey and create scalable models for other emerging markets facing similar challenges,” said Sinha.
Additional investors in the fund include the U.S. International Development Finance Corporation (DFC), 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 Azim Premji Trust. The diversity of these partners underscores the international commitment to supporting India’s climate initiatives and innovation-driven sustainability solutions.
As the climate tech ecosystem in India continues to grow, Avaana’s new fund stands poised to drive innovation and foster transformative solutions that may serve as models for other climate-vulnerable and emerging markets globally.
Source: Business Standard
Featured Image: Credit: Avaana Capital
