Avaana Climate & Sustainability Fund Closes $70M for India's First Early Stage Climate Focused Fund
By: WE Staff | Wednesday, 21 June 2023
Avaana Capital, an Indian climate-focused venture capital firm, has achieved a significant milestone in India's emerging climate-tech ecosystem by securing commitments of $70 million for their first close in Avaana Climate and Sustainability Fund. The firm is targeting a total corpus of $100-125 million for the fund, which will focus investments in three sectors that are responsible for 90% of India's emissions: Energy Transition & Resource Management; Mobility & Supply Chains, and; Sustainable Agriculture & Food Systems.
Since its launch, the fund has garnered strong interest from global and domestic Limited Partners (LPs). It has attracted renowned institutional investors, including the Small Industries Development Bank of India (SIDBI), the Self Reliant India (SRI) Fund, the UK India Development Cooperation Fund (UKIDCF), and marquee corporates such as Godrej Group, Murugappa, Torrent, Tsadik, and Bellerive Capital, among others.
Led by industry veterans Anjali Bansal, Swapna Gupta, and Shruti Srivastava, Avaana Climate and Sustainability Fund will further invest in tech-driven and innovative climate solutions, looking to solve climate risk mitigation, adaptation, and resilience building. Avaana Capital has made notable portfolio investments such as Eeki Foods, Aerem, Kazam, and Sentra.world, FarMart, Eggoz, Ninety One 91, Turno and Terra.do.
“With significant global capital flowing, supportive policies, corporate interest, and wealth of entrepreneurial talent in the climate sector, India's climate-tech story is rapidly progressing. At Avaana Climate and Sustainability Fund, we evaluate over 200 new climate opportunities every quarter,” said Anjali Bansal, Founding Partner, Avaana Capital.
“At Avaana Capital, we recognize that India is integral to global climate solutions and invest in climate solutions for India and the world. Our technology and innovation-first approach, deep sector expertise, and strong relationships across the ecosystem help us build large-scale outcomes in climate and sustainability. Avaana invests in thematic areas of Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems,” said Swapna Gupta, Partner, Avaana Capital.
"India, with its responsibility to uplift the standards of living for over 400 million citizens, requires swift acceàleration in the adaptation and adoption of technology for climate action. Avaana is the leader in climate tech and has the crucial mission of mitigating climate risk. SIDBI is delighted to support Avaana's remarkable progress and applauds their efforts in taking the pole position in this vital endeavor,” said Shri S Ramann, Chairman & Managing Director, of SIDBI.
Christina Scott, Acting British High Commissioner to India, said, “The UK is proud to support development partnerships and investments that are helping to address some of the biggest global challenges. I am pleased our new investment in the Avaana Fund will support innovative businesses to develop solutions to climate change and inclusion.”
Suresh Kohzikote, from Self Reliant India (SRI) Fund, shared, "The SRI Fund's investment objective is to support onward growth capital to boost the economy and create a self-reliant India. Our partnership with Avaana Climate and Sustainability Fund — India's first tech-led climate fund — is to realize those objectives through climate solutions from India.”
As the world's second-largest population and sixth-largest economy, India plays a critical role in global climate solutions. Our transition to sustainability must prioritize people, the planet, and profits. Technology-led disruption in sectors like energy, resources, mobility, supply chains, agriculture, and food systems holds immense potential. Climate-tech investments in India have surged, attracting $1.2 billion from 2016 to 2020, with a focus on renewable energy and electric mobility. To achieve India's net-zero emissions goal by 2070, approximately $2.5 trillion in investments is needed by 2030. Avaana Capital's Climate and Sustainability Fund aims to mobilize capital and support innovative climate solutions aligned with India's targets.