The first closing of the Avaana Climate and Sustainability Fund has commitments totaling $70 million, according to a statement released by the venture capital firm Avaana Capital on Wednesday.
The Mumbai-based company is aiming for a fund with a total corpus of between $100 and 125 million dollars. The fund will concentrate its investments in three areas, it claims, which account for 90% of India’s emissions: energy transition and management of resources; flexibility and supply chains; and food and agricultural sustainability.
Small Industries Development Bank of India (SIDBI), Self Reliant India (SRI) Fund, UK India Development Cooperation Fund (UKIDCF), among others, as well as corporations like Godrej Group, Murugappa, Torrent, Tsadik, and Bellerive Capital, are among the institutional investors who have shown interest in the fund.
The Avaana Climate and Sustainability Fund, led by Anjali Bansal, Swapna Gupta, and Shruti Srivastava, will also invest in cutting-edge climate solutions that are technologically driven.
Aerem, Kazam, Sentra.world, FarMart, Eggoz, Ninety One 91, Turno, and Terra.do are a few prominent investments in Avaana Capital’s portfolio. According to Anjali Bansal, founding partner at Avaana Capital, capital from the new environment fund has already been invested in five firms; one agreement is still secret.
At Avaana Capital, we believe that investing in climate solutions for both India and the rest of the world reflects our understanding that India is essential to global climate solutions. We are able to create significant results in climate and sustainability because of our approach that puts technology and innovation first, our in-depth sector experience, and our solid ties across the ecosystem, the speaker stated.
Avaana Capital partner Swapna Gupta explained that the Avaana Climate and Sustainability Fund presently assesses more than 200 potential climate opportunities every three months.
“The UK is happy to support investments and development partnerships that are assisting in resolving some of the most pressing global issues. In the statement, Christina Scott, the acting British High Commissioner to India, expressed her satisfaction that the new funding we have provided to the Avaana Fund will help creative companies find answers to climate change and inclusivity.
From 2016 to 2020, climate-tech investments in India increased significantly, bringing in $1.2 billion, with a concentration on renewable energy and electric transportation. According to the statement, by 2030, investments totaling around $2.5 trillion will be required to help India reach its net-zero emissions target of 2070.
