Climate-focused startup investor Avaana Capital on Wednesday announced the final close of its $135 million Avaana Climate and Sustainability Fund to back early-stage startups focusing on energy and resource management, mobility and supply chains, and sustainable agriculture and food systems — three core sectors that account for 90 per cent of India’s carbon emissions.
The fund is backed by institutional investors including the world’s largest climate fund, the Green Climate Fund (GCF) which has made its first direct investment in India, the U.S. International Development Finance Corporation (DFC), the UK Government through the UK-India Development Cooperation Fund (UKIDCF), the Self Reliant India (SRI) Fund and Small Industries Development Bank of India (SIDBI), Azim Premji Trust and multiple large corporations.
The company said India, according to estimates, will need over $10 trillion by 2070 to meet its net-zero targets and address the growing risks of climate change.
Speaking on the new fund, Anjali Bansal, Partner at Avaana Capital, said it “will help build the next generation of climate-first companies to transform key sectors and make meaningful progress toward a sustainable future.”
Avaana Capital said that since 2018, its investments have included over 20 startups, including portfolio companies FarMart, Ninety One cycles, Kazam, Eeki Foods, Aerem, Sentra, Eggoz, TurnO, Terra.do, and Dharaksha. Avaana’s team has previously made investments in category leaders like Delhivery, Nykaa, Urban Company, Shadowfax, Ninjacart, Moveinsync, and Stellapps.
“This aligns with GCF’s vision of catalyzing meaningful climate solutions as this partnership will accelerate India’s net-zero journey and create scalable models for other emerging markets facing similar challenges,” said Kavita Sinha, Director, Division of Private Sector Facility, Green Climate Fund on the investment.