Avaana Capital, India’s climate-focused venture capital firm, has infused its Avaana Climate and Sustainability Fund with USD 135 million, supported by prominent institutional investors, including the Green Climate Fund (GCF).
Anjali Bansal, partner at Avaana Capital, highlighted the significance of this support, emphasizing the role of innovation in driving climate action and creating long-term impact. The fund aims to build the next generation of climate-first companies across three core sectors—Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems—which together account for 90% of India’s carbon emissions.
Bansal noted India’s critical role as the world’s most climate-vulnerable nation, with the largest population and the sixth-largest economy. She stated that the country will require investments exceeding USD 10 trillion by 2070 to meet its net-zero targets and mitigate climate change risks.
The Green Climate Fund, the world’s largest climate-focused fund, is making its inaugural investment in an Indian climate venture fund through Avaana Climate and Sustainability Fund. Kavita Sinha, Director of the Division of Private Sector Facility at GCF, stated that Avaana’s focus on transformative technologies in food, agriculture, energy, and mobility aligns with GCF’s mission to catalyze effective climate solutions.
In addition to GCF, other notable investors 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, the Small Industries Development Bank of India (SIDBI), and the Azim Premji Trust.