Avaana Climate and Sustainability Fund has successfully closed a $70 Mn fundraise, and has set its focus to invest in new climate tech ventures. Avaana Capital, an early-stage climate-tech investor based in India which led this fund raise announced this on Wednesday. The fund aims to secure a target corpus of $100-125 million and will focus on three key sectors: energy transition and resource management, mobility and supply chains, and sustainable agriculture and food systems.
The Avaana Climate and Sustainability Fund will not only provide financial support to promising startups but also seek to address climate risk mitigation, adaptation, and resilience building. The fund’s overarching goal is to identify and invest in innovative companies that are working towards sustainable solutions to combat climate change.
According to Anjali Bansal, Founding Partner at Avaana Capital, the fund’s focus aligns with the urgent need for climate action in India. Bansal states, “With significant global capital flowing, supportive policies, corporate interest, and a wealth of entrepreneurial talent in the climate sector, India’s climate-tech story is rapidly progressing. At Avaana Climate and Sustainability Fund, we evaluate over 200 new climate opportunities every quarter.” This rigorous evaluation process demonstrates Avaana Capital’s commitment to selecting high-potential startups that can make a real impact in the fight against climate change.
Furthermore, Shri S Ramann, Chairman and Managing Director of SIDBI, emphasized the importance of technology adoption in addressing climate challenges in India. He stated, “India, with its responsibility to uplift the standards of living for over 400 million citizens, requires swift acceleration in the adaptation and adoption of technology for climate action.” The Avaana Climate and Sustainability Fund aims to bridge this gap by supporting startups that offer innovative technological solutions to climate-related issues.
Avaana Capital’s track record in the climate-tech space is already quite impressive, with investments in companies such as Eeki Foods, Aerem, and Kazam. These portfolio companies are actively contributing to sustainable farming, solar rooftop financing, and electric vehicle charging infrastructure, respectively.
In fact, one of Avaana’s portfolio companies, Turno, recently made headlines by raising $13.8 million in its Series A funding round. Turno focuses on commercial electric vehicles (EVs) and aims to accelerate the transition to a greener transportation sector. This success story showcases Avaana Capital’s ability to identify promising startups and provide them with the necessary financial support to thrive.
Avaana Climate and Sustainability Fund marks a significant milestone in the fight against climate change
With the latest funding round for the Avaana Climate and Sustainability Fund, Avaana Capital is poised to further strengthen its position as a leading climate-tech investor in India. The fund’s target corpus of $100-125 million will allow the company to significantly expand its investments in startups that are working towards a sustainable future.
In conclusion, Avaana Capital’s successful $70 million first close in the Avaana Climate and Sustainability Fund marks a significant milestone in the fight against climate change. With a diverse group of investors, a focus on key sectors, and a commitment to supporting startups that offer innovative climate solutions, Avaana Capital is playing a vital role in driving India’s climate-tech sector forward. As the urgency for climate action continues to grow, initiatives like the Avaana Climate and Sustainability Fund will undoubtedly make a substantial impact on building a more sustainable and resilient future.
Several notable investors have shown interest in the fund, including the Small Industries Development Bank of India (SIDBI), Self Reliant India (SRI) Fund, the UK India Development Cooperation Fund (UKIDCF), and marquee corporates like Godrej Group, Murugappa, Torrent, Tsadik, and Bellerive Capital. This impressive lineup of investors highlights the growing importance of climate and sustainability in both the public and private sectors.
