Avaana Capital hits first close of $70M for climate-focused fund

Avaana Capital on Wednesday said it has raised $70 million for its first close in Avaana Climate and Sustainability Fund.

With a target corpus of $100-125 million, the fund will focus on three sectors—energy transition and resource management; mobility and supply Chains, and sustainable agriculture and food systems.

Small Industries Development Bank of India (SIDBI), Self Reliant India (SRI) Fund, the UK India Development Cooperation Fund (UKIDCF) as well marquee corporates such as Godrej Group, Murugappa, Torrent, Tsadik, and Bellerive Capital have shown interest in the fund.

The fund will also invest in startups looking to solve climate risk mitigation, adaptation, and resilience building, according to a statement.

Led by Anjali Bansal, Swapna Gupta, and Shruti Srivastava, Avaana Capital is an early-stage climate-tech investor in India. It has invested in companies such as sustainable farming startup Eeki Foods, solar rooftop financing company Aerem, and electric vehicle charging software platform Kazam, among others.

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One of Avaana's portfolio companies, commercial EV-focused Turno, recently raised $13.8 million in its Series A funding round.

“With significant global capital flowing, supportive policies, corporate interest and 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,” said Anjali Bansal, Founding Partner, Avaana Capital.

"India, with its responsibility to uplift the standards of living for over 400 million citizens, requires swift acceàleration in the adaptation and adoption of technology for climate action,” added Shri S Ramann, Chairman & Managing Director, SIDBI.