Mobility, energy drive climate tech investments in India: Report

Investments in India's climate tech sector grew in India significantly over the years due to growth in sub-sectors such as mobility and energy, a new report found.

The report by FSG titled India's Green Revolution 2.0 – Trends Shaping India's Climate-Tech Sector said that the two sectors collectively accumulated as much as 94% of total climate tech investments in the country between 2019 and end of November 2023.

In total, climate tech attracted $2.8 billion million till November 30, 2023, representing only 57% of the total investment garnered in 2022.

Industry, manufacturing, and resource management garnered close to 2% of total investments over the same period. The built environment—such as buildings used for work, housing or other activities—and food, agriculture, and land use sub-sectors secured slightly over 1% of the total funding. The financial services sub-sector received less than 1% of the total climate-tech funding, the report found.

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The report also found dissonance in the amount of funding in each sector and emissions. For instance, energy as a sector accounts for 38% of total emissions but received almost 74% of the funding.

On the other hand, the industry, manufacturing, and resource management sector and the food, agriculture, and land use sector account for approximately 30% and 20% of total emissions, respectively, they collectively received only about 4-5% of the total investments over the analysis years.

"It highlights the role climate innovation and sustainable practices play in our nation’s future, underscoring the importance of prioritizing climate solutions in our national agenda," said Rishi Agarwal, MD, Head-Asia in a statement.

The EV sector raised over half a billion dollars—$667.9 million to be precise—in the first 10 months of 2023, while the clean energy sector raised $390.3 million, led by a $360 million mega-deal bagged by CleanMax Solar, according to YourStory data.

Within climate tech most recently Varaha raised $8.7 million in a Series A round led by RTP Global and existing investors including Omnivore and Orios Venture Partners.