Avaana Capital, a climate-tech venture capital fund, said that it has closed its USD 135 million Avaana Climate and Sustainability Fund. With this fund in hand, the firm is expected to invest in early-stage companies who are focused in leveraging technology to devise scalable solutions for climate mitigation, adaptation, and helping India in its net zero journey.
“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,” said Anjali Bansal, Partner at Avaana Capital.
She further added, "The Avaana Climate & Sustainability Fund will help build the next generation of climate-first companies to transform key sectors and make meaningful progress toward a sustainable future.” According to Avaana Capital, this funding saw the much needed and sturdy support from institutional investors which included Green Climate Fund (GCF).
Furthermore, other key participants include the U.S. International Development Finance Corporation (DFC), UK Government through UK- India Development Cooperation Fund (UKIDCF), the Self Reliant India (SRI) Fund and Small Industries Development Bank of India (SIDBI), Azim Premji Trust and several large corporations.
“GCF is proud to make its first investment in a climate venture fund in India through Avaana’s Climate and Sustainability Fund. Avaana’s focus on transformative technologies in critical sectors like food and agriculture, energy, mobility, and similar climate ventures will provide climate aligned solutions to people and support India’s climate ambitions. 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.
If we speak of the firm’s Climate and Sustainability Fund, it will focus on three core sectors, i.e., Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems. Also to note, these sectors account for 90 percent of the country’s carbon emissions, as per the Avaana Capital. Avaana Capital was established in 2018 and is backed by more than 20 startups, which include FarMart - software-as-a-service food supply platform, Kazam - charging solution provider, among others.
