Avaana Capital's Climate Fund Closes at $135M, Can This Save Climate?

In a landmark move for India's burgeoning climate-tech sector, Avaana Capital has announced the final close of its Avaana Climate and Sustainability Fund, exceeding its target size to reach a massive USD 135 million. This marks the largest climate-focused venture capital fund in India to date, signaling a powerful wave of investment in sustainable solutions.

TICE brings you the details of this groundbreaking development, highlighting its potential to reshape India's green landscape.

Avaana Capital's Fresh Fund

Avaana Capital, a leading climate-focused venture capital firm, is dedicated to nurturing early-stage companies that harness technology to combat climate change. The fund will focus on three critical sectors:

• Energy and Resource Management: Investing in renewable energy, energy storage, carbon sequestration, and smart grids to revolutionize India's energy landscape.
• Mobility and Supply Chains: Backing innovations in electric vehicles, sustainable logistics, and green supply chain solutions to reduce emissions and enhance efficiency.
• Sustainable Agriculture and Food Systems: Supporting climate-resilient agriculture, precision farming, and sustainable food production practices to ensure food security and environmental sustainability.

The fund has garnered impressive support from prominent global and domestic investors, including:

• Green Climate Fund (GCF): The world's largest climate fund makes its first direct investment in India, highlighting the nation's growing importance in the global fight against climate change.
• U.S. International Development Finance Corporation (DFC): Reinforces the U.S. commitment to supporting sustainable development in India.
• UK-India Development Cooperation Fund (UKIDCF): Underscores the UK's dedication to collaborating with India on climate action.
• Self Reliant India (SRI) Fund and Small Industries Development Bank of India (SIDBI): Demonstrates India's strong commitment to fostering domestic innovation in the climate-tech sector.

India's Urgent Need for Climate Action

As the world's most populous country and a major economic power, India faces significant challenges due to climate change. The nation is projected to require over USD 10 trillion in investments by 2070 to achieve its net-zero goals and mitigate the impacts of a changing climate. Avaana Capital's investment strategy aims to address this urgent need by accelerating innovation and driving the adoption of sustainable technologies.

Anjali Bansal, Partner at Avaana Capital, emphasized the significance of this milestone, "India is at a crucial juncture in its climate action journey. The overwhelming support from global and domestic investors underscores the power of innovation in driving climate action and creating lasting impact."

Mateo Goldman, Senior Vice President for Investments at DFC, expressed his enthusiasm for the fund's potential "We see immense potential in India. DFC's support for Avaana's climate fund is a testament to our commitment to fostering climate-resilient solutions and accelerating India's transition to a low-carbon economy."

Swapna Gupta, Partner at Avaana Capital, highlighted the transformative power of technology "India is on the verge of a sustainable revolution fueled by cutting-edge technologies. By providing climate-focused capital and fostering a collaborative ecosystem, we will empower startups to develop solutions for the pressing challenges of climate change."

Avaana Capital's Impactful Approach

Avaana Capital's investment philosophy centers on balancing people, planet, and profits, creating a sustainable development pathway through climate innovation. In addition to financial support, Avaana provides strategic guidance, connects startups with industry experts, and fosters collaboration with policymakers and academia. This holistic approach enables Avaana to drive thought leadership and catalyze impactful climate action across various sectors.

Avaana's Portfolio and Leadership

Since its inception in 2018, Avaana Capital has backed over 20 pioneering startups, including FarMart, Ninety One Cycles, Kazam, Eeki Foods, and more. The leadership team has a proven track record of nurturing successful companies like Delhivery, Nykaa, and Urban Company.

Avaana Capital's successful fundraise marks a pivotal moment for India's climate-tech ecosystem. By empowering innovative startups and fostering collaboration, Avaana is playing a crucial role in driving India's green revolution and accelerating the transition to a sustainable future.

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