Avaana has secured commitments of US$ 70 million for the first close of the Avaana Climate and Sustainability Fund as part of the current ongoing round of US$ 100 – US$ 125 million, making this the first-ever dedicated fund in India for catalysing tech and innovation-led climate solutions.
This achievement marks a significant milestone in India’s burgeoning climate-tech ecosystem. The fund strategically invests across three key sectors that collectively account for approximately 90% of India’s emissions: Energy Transition & Resource Management, Mobility & Supply Chains, and Sustainable Agriculture & Food Systems. This comprehensive approach ensures a targeted focus on areas with the greatest potential for sustainable impact, aligning with India’s ambitious goals for a greener and more resilient future.
The ongoing fundraise has received active participation from domestic institutional investors, foreign institutional investors, discerning family offices, climate experts and some exceptional entrepreneurs in the Indian startup ecosystem. The fund has received commitments from marquee investors like the Small Industries Development Bank of India (SIDBI), the Self Reliant India (SRI) Fund, the UK India Development Cooperation Fund, and corporates such as Godrej Group, Murugappa, Torrent, Tsadik, and Bellerive Capital, among others. The climate fund also has a significant commitment with 10% of the fund corpus being invested by the General Partner (GP).
Avaana’s senior leadership includes industry veterans Anjali Bansal, Swapna Gupta and Shruti Srivastava, while its Advisory Board comprises Sandeep Singhal, S. Ramadorai, Anami Roy, Tsega Gebreyes and Mridula Ramesh. Through 2019 to 2022, we have successfully made 20 sustainability-focused investments. Notably, the portfolio includes FarMart, Intello Labs, Eggoz, 91 Cycles, Turno and Terra.do among others. The Climate and Sustainability Fund has already started deployment and has made investments in Eeki Foods, Kazam, Aerem and Sentra.world.
“At Avaana, we invest in businesses solving pressing climate challenges to create value and drive positive change. Our investments in tech-led solutions will solve not just for India, but for the climate problem globally, enabling climate risk mitigation, adaptation and resilience in our focus sectors. With a confluence of significant corporate interest, policy support and excellent quality of entrepreneurial talent, India’s climate-tech story is progressing at warp speed – we are seeing 200 new climate opportunities every quarter,” says Swapna Gupta.
Climate is the next big mega trend, with significant global capital coming into space. With the world’s second largest population, the fifth largest economy and the third largest emissions, India has to be an integral part of any global climate solution. Avaana’s investment fuels growth, expands capabilities, and amplifies impact. It plays a crucial role in building low-carbon pathways towards India’s sustainable and prosperous future. We are excited about the trust our partners and investors place in our vision and our experience. It is a significant step towards becoming the leading climate and sustainability platform, delivering positive outcomes for people and the planet.
Also read G20 Meets on travel and tourism in Goa
