Avaana Capital Completes Final Close of USD 135 Mn Climate and Sustainability Fund The fund is backed by Green Climate Fund (GCF), DFC, UKIDCF, SRI Fund, SIDBI, Azim Premji Trust, and corporate supporters, marking GCF's first direct investment in India.
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Avaana Capital, a leading climate-focused venture capital firm, has successfully completed the final close of its Avaana Climate and Sustainability Fund with a total fund size of USD 135 million.
The fund is dedicated to investing in early-stage companies that leverage innovative technologies to deliver scalable solutions for climate mitigation, adaptation, and resilience. It aims to play a key role in accelerating India's transition to a net-zero economy, focusing on critical sectors that contribute to 90% of the country's carbon emissions: energy and resource management, mobility and supply chains, and sustainable agriculture and food systems.
The fund has garnered strong backing from several prestigious institutional investors, including the world's largest climate fund, the Green Climate Fund (GCF), which is making its first direct investment in India. Other notable participants include the US International Development Finance Corporation (DFC), the UK Government through the UK-India Development Cooperation Fund (UKIDCF), the Self-Reliant India (SRI) Fund, Small Industries Development Bank of India (SIDBI), and the Azim Premji Trust, along with major corporate supporters.
Avaana Capital intends to invest in 20–25 early-stage companies through this specialised fund. The firm will issue initial investments ranging between INR 10 crore and INR 30 crore, with the flexibility to increase stakes in successful ventures. The goal is to foster groundbreaking climate-tech innovations that can transform key sectors, contributing to a sustainable future.
Anjali Bansal, Partner at Avaana Capital, emphasised, "The support from leading global and domestic institutional investors underscores the importance of innovation in driving climate action and delivering long-term impact. The Avaana Climate and Sustainability Fund will help build the next generation of climate-first companies to make meaningful progress toward a sustainable future."
Kavita Sinha, Director, Division of Private Sector Facility, Green Climate Fund, shared, "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 catalysing meaningful climate solutions, as this partnership will accelerate India's net-zero journey and create scalable models for other emerging markets facing similar challenges."
Since its inception in 2018, Avaana has backed over 20 pioneering startups, such as FarMart, Ninety One Cycles, Kazam, Eeki Foods, and more, while its leadership team has nurtured category leaders including Delhivery, Nykaa, Urban Company, Shadowfax, Ninjacart, Moveinsync, and Stellapps.
