Avaana Capital has announced the final close of its Avaana Climate and Sustainability Fund, securing $135 million, exceeding its original target of $120 million. This fund marks a significant step towards fostering innovative climate solutions in India, a nation striving to mitigate its carbon footprint and achieve net-zero emissions by 2070. Avaana Capital's focus on early-stage startups that specialize in technology-driven climate solutions is central to its strategy.
The fund will invest in three critical sectors that collectively contribute 90% of India's carbon emissions: energy and resource management, mobility and supply chains, and sustainable agriculture and food systems. Avaana aims to bridge the funding gap for startups that tackle these areas, propelling India’s transition to a low-carbon economy.
With institutional backing from globally recognized investors like the Green Climate Fund (GCF), U.S. International Development Finance Corporation (DFC), and prominent Indian entities such as the Self-Reliant India Fund (SRI) and SIDBI, Avaana Capital has demonstrated its ability to attract major support. This funding highlights the urgent need for innovation-driven climate solutions not only for India but also for other emerging economies.
"Innovation is the key to unlocking climate action at scale, and Avaana’s Climate and Sustainability Fund is a testament to the collective drive towards a sustainable future," said Anjali Bansal, Partner at Avaana Capital.
Avaana’s investment strategy is sharply focused on nurturing 20-25 early-stage startups. The firm plans to offer initial investments between Rs 10 crore to Rs 30 crore per company, with the flexibility to scale up investments for companies showing substantial progress. By leveraging cutting-edge technologies, Avaana intends to create high-impact solutions that directly address India’s most pressing climate challenges.
Since its founding in 2018, Avaana has backed over 20 startups, including FarMart, Kazam, and Ninety One Cycles, which are already demonstrating climate-conscious innovations. Anjali Bansal emphasized that the support from global investors reflects the necessity of aligning business growth with sustainability goals.
"Avaana Capital’s mission extends beyond India’s borders, creating scalable climate solutions that can serve as blueprints for emerging markets worldwide," Bansal concluded.
As India requires over $10 trillion in investment to meet its 2070 net-zero goal, Avaana's initiative is poised to make a pivotal impact. By focusing on scalable, tech-enabled solutions, the fund will contribute significantly to India's climate adaptation and resilience efforts.
Source: ISN, VC Circle