Indian environment tech sector has raised a total funding of $7.3B to date

The Indian environment tech sector has raised a total funding of $7.3B to date, according to data platform Tracxn's Environment Tech India report.

According to the report, India's environmental technology funding saw substantial growth between 2018 and 2022, surging from $0.23 billion to $2.47 billion. Environment tech funding in India peaked in 2022 at $2.47 billion. However, it experienced a decline to $1.68 billion in 2023, a 32% decrease from 2022. As of the first three months of 2024, the funding stands at $0.24 billion.

Bengaluru ($2.7 billion) tops the list in this space in terms of all-time city-wise funding, followed by Delhi ($1.2 billion) and Mumbai ($942 million). 

Blume Ventures tops the chart followed by 100X.VC, Sangam Ventures, Good Capital, Soonicorn Ventures, as the most active seed-stage investors. Early-stage round was led by Tiger Global, Sequoia Capital, and Peak XV Partners. The Rise Fund, Think Investments, Tekne Capital Management, Ashna Advisors are the top investors in late-stage startups.

From 2018 to 2024, 388 new companies have been funded, taking the total number to 865. BluSmart, Battery Smart, and Ecofy are some of the new entrants in the funded club.

The environment tech sector has seen 14 IPOs. The highest average IPO market cap from 2020 to 2024, stood at $0.2 billion in 2023.

The report also revealed that there have been 25 acquisitions to date. 

Only 5 companies reported $100 million + rounds in 2023. They are Avaada, TI Clean Mobility, Mahindra Electric Automobile, Ola Electric and Ather Energy. Ola Electric is the only one unicorn that has emerged from the environment tech space in India so far.

Despite the global increase in funding, India's share remained consistently low, fluctuating between 0% and 7%. However, there was a significant surge in India's share in global funding in this space from 1% in 2018 to 5% in 2019.