Avaana Capital secures $135 million in final close for climate fund

BENGALURU: Avaana Capital, a climate-focused venture capital firm, has secured total commitments of $135 million for the final close of its Avaana Climate and Sustainability Fund, it said in a statement on Wednesday.

The Mumbai-based firm was initially targeting a total corpus of $100-125 million for the fund, which will focus its investments in three sectors that it said are responsible for 90% of India's emissions: energy transition and resource management, mobility and supply chains, and sustainable agriculture and food systems.

Led by Anjali Bansal, Swapna Gupta, and Shruti Srivastava, Avaana Climate and Sustainability Fund will also invest in tech-driven and innovative climate solutions. The fund’s portfolio investments include Eeki Foods, Aerem, Kazam, sentra.world, FarMart, Eggoz, Turno and Terra.do.

The fund has attracted institutional investors, including Small Industries Development Bank of India (SIDBI), Self Reliant India (SRI) Fund, the UK India Development Cooperation Fund (UKIDCF), and corporates such as Godrej Group and Murugappa, among others.

“India is at a pivotal moment in its climate action journey. 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,” Bansal, partner, Avaana Capital, said.

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, about $2.5 trillion in investments is needed by 2030, Avaana had said earlier.

“Our investments around the world are boosting development in emerging economies and we see immense potential in India. 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,” Mateo Goldman, senior vice president for investments at the US International Development Finance Corporation (DFC), said.


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