October 23, 2024: Avaana Capital, a climate-tech venture capital fund announced today that it has successfully closed its $135 million Avaana Climate and Sustainability Fund to focus on three core sectors – Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems.
The VC will deploy the fresh capital in early-stage firms that is engaged in developing scalable solutions for climate mitigation, adaptation, and helping India’s journey to net zero.
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,” Bansal added.
“GCF is proud to make its first investment in a climate venture fund in India through the VC’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.
Avaana Capital to focus on Energy and Resource Management, Mobility and Supply Chains
The firm’s Climate and Sustainability Fund focuses on three core sectors—Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems. These sectors account for 90% of the country’s carbon emissions, according to Avaana Capital.
Founded in 2018, Avaana Capital has backed more than 20 startups, including software-as-a-service food supply platform FarMart, charging solution provider Kazam, among others.
Avaana Capital, has witnessed strong support from institutional investors, including the Green Climate Fund (GCF). Other key participants include 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.
