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VC firm Avaana Capital announces first close of climate tech fund at $70 mn

Fund will invest in sectors like energy transition, mobility and supply chains, sustainable agriculture

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Aryaman Gupta New Delhi

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Venture capital (VC) firm Avaana Capital on Wednesday announced the first close of its Climate and Sustainability Fund at $70 million for investments in technology-driven climate solutions.

The fund has institutional investors like Small Industries Development Bank of India (SIDBI), Self Reliant India (SRI) Fund, and the UK India Development Cooperation Fund (UKIDCF). Godrej Group, Murugappa, Torrent, Tsadik, and Bellerive Capital are among companies investing in the fund.

“With significant global capital flowing, supportive policies, corporate interest and wealth of entrepreneurial talent in the climate sector, India’s climate-tech story is rapidly progressing. At Avaana Climate and Sustainability Fund, we evaluate over 200 new climate opportunities every quarter,” said Anjali Bansal, founding partner, Avaana Capital.

The home-grown firm said it is targeting a total corpus of $100-125 million for the fund, which will invest in sectors like energy transition and resource management, mobility and supply chains, and sustainable agriculture and food systems.

“India, with its responsibility to uplift the standards of living for over 400 million citizens, requires swift acceleration in the adaptation and adoption of technology for climate action. Avaana is the leader in climate tech and the crucial mission of mitigating climate risk,” said S Ramann, chairman and managing director of SIDBI.

Avaana Capital has portfolio investments in Eeki Foods, Aerem, Kazam, sentra.world, FarMart, Eggoz, Ninety One 91, Turno and Terra.do.

Suresh Kohzikote, of Self Reliant India (SRI) Fund, said: “The SRI Fund’s investment objective is to support onward growth capital to boost the economy and create a self-reliant India. Our partnership with Avaana Climate and Sustainability Fund—India’s first tech-led climate fund—is to realise those objectives through climate solutions from India.” 

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First Published: Jun 21 2023 | 1:35 PM IST

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