Avaana Capital, a climate-tech venture capital fund has completed the final close of its $135 million Avaana Climate and Sustainability Fund.
The fund is dedicated to investing in early-stage startups that leverage technologies to deliver scalable solutions for climate mitigation, adaptation, and resilience – essential to India’s net-zero journey. It aims to play a key role in accelerating India’s transition to a net-zero economy, focusing on three key sectors responsible for 90% of India’s carbon emissions: energy and resource management, mobility and supply chains, and sustainable agriculture and food systems.
The fund saw strong support from institutional investors, including the Green Climate Fund (GCF). Other key participants include the U.S. International Development Finance Corporation (DFC), the 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.
Avaana Capital intends to invest in 20–25 early-stage companies through this specialised fund. The firm will issue initial investments ranging between $10 crore and $30 crore, with the flexibility to increase stakes in successful ventures.
Founded in 2018, Avaana Capital has backed more than 20 startups, including FarMart, Ninety One Cycles, Kazam, Eeki Foods, and more, while its leadership team has nurtured category leaders including Delhivery, Nykaa, Urban Company, Shadowfax, Ninjacart, Moveinsync, and Stellapps.
Anjali Bansal, Partner, Avaana Capital, said, “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. 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.”
Kavita Sinha, Director, Division of Private Sector Facility, Green Climate Fund, said, “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 catalysing meaningful climate solutions as this partnership will accelerate India’s net-zero journey and create scalable models for other emerging markets facing similar challenges.”
Adding to this, Sally Taylor, Minister Counsellor, British High Commission, said, “The UK Government’s development investments in India support innovative Indian businesses to develop products and services that will accelerate sustainable, inclusive growth. We are pleased to be deploying our funds through Avaana to enable them to back those pioneering enterprises harnessing technology to develop new climate solutions to address the climate crisis.”
R.K. Singh, Chief General Manager, SIDBI said, “At SIDBI, our focus has been on creating pathways for climate responsive enterprise eco system to thrive in India. The Avaana Climate and Sustainability Fund aligns perfectly with our mission by supporting innovative, climate-tech startups that are key to India’s transition to a sustainable, low-carbon economy.”
