Avaana Capital raises $135M fund for climate and sustainability tech startups

Climate-tech venture capital fund Avaana Capital on Wednesday said that it has closed its $135 million Avaana Climate and Sustainability Fund.

The firm will invest in early-stage companies that use technology to create scalable solutions for climate mitigation, adaptation, and helping India’s journey to net zero, it 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,” said Anjali Bansal, Partner, Avaana Capital.

"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," she added.

According to Avaana Capital, the fund saw 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.

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“GCF is proud to make its first investment in a climate venture fund in India through Avaana’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.

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.