Avaana Capital, India’s leading climate-focused venture capital firm, announced the final closure of its Avaana Climate and Sustainability Fund, securing a total fund of $135 million. This makes it the largest climate-focused institutional venture fund in India.

The Avaana Climate and Sustainability Fund aims to invest in early-stage companies that use technology to develop scalable climate mitigation, adaptation and resilience solutions, thereby moving India towards net zero emissions. The fund primarily targets three sectors that account for 90% of India’s carbon emissions: energy and resource management, mobility and supply chains, and sustainable agriculture and food systems.

• Also read: We need to be smart in our approach to decarbonization and design our own CBAM-like mechanism: Godrej

The fund has benefited from massive support from renowned institutional investors, including the Green Climate Fund (GCF), which made its first direct investment in India. Other notable investors include the US International Development Finance Corporation (DFC), the UK-India Development Cooperation Fund (UKIDCF), the Self Reliant India Fund (SRI), the Small Industries Development Bank of India (SIDBI), the Azim Premji Trust, and several large corporations.

As one of the most climate-vulnerable countries, India plays a critical role in global climate solutions. Estimates suggest the country will need investments in excess of $10 trillion by 2070 to meet its net-zero emissions targets and address the growing risks of climate change. Avaana’s investments are designed to address this pressing need by driving innovation to reduce emissions, improve resource efficiency, and accelerate the transition to a low-carbon economy.

Anjali Bansal, Partner at Avaana Capital, commented: “India is at a pivotal moment in its climate action journey. The support we have received from leading global and domestic institutional investors highlights the importance of innovation to drive climate action and deliver long-term impact. The Avaana Climate and Sustainability Fund will help build the next generation of climate-focused businesses to transform key sectors and make meaningful progress toward a sustainable future.

Kavita Sinha, Director of the Private Sector Division of the Green Climate Fund, added: “Avaana’s focus on transformative technologies in critical sectors like food and agriculture, energy, Mobility and other similar climate projects will provide people with climate-smart solutions and support India’s climate. ambitions. »

• Also read: Stronger monsoon winds bringing more rainfall to arid northwest India: Southampton university study

Sally Taylor, Minister Counselor at the British High Commission, said: “The UK Government’s development investments in India are helping innovative Indian businesses develop products and services that will accelerate sustainable and inclusive growth. We are pleased to deploy our funds through Avaana to support these pioneering companies leveraging technology to develop new climate solutions to address the climate crisis.

RK Singh, Chief Managing Director, SIDBI, added, “At SIDBI, our focus has been to create pathways for the climate-responsive business ecosystem to thrive in India. The Avaana Climate and Sustainability Fund aligns perfectly with our mission by supporting innovative climate technology startups that are critical to India’s transition to a sustainable, low-carbon economy.