Avaana Capital Raises $135 Million Climate-Tech VC Fund to Support India's Net Zero Journey

Avaana Capital, a climate-focused venture capital firm, announced on Wednesday the final close of its Avaana Climate and Sustainability Fund, securing $135 million. The fund aims to invest in early-stage companies developing scalable solutions for climate mitigation, adaptation, and resilience, accelerating India's path to net-zero emissions.

The fund's primary focus will be on three sectors responsible for 90% of India's carbon emissions: Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems. Avaana Capital has gained backing from the Green Climate Fund (GCF), marking its first direct investment in India, along with support from the US International Development Finance Corporation (DFC), UK Government’s UK-India Development Cooperation Fund (UKIDCF), the Self Reliant India Fund, Azim Premji Trust, and several large corporations.

Anjali Bansal, Partner at Avaana Capital, emphasized that the fund will support the next generation of climate-first companies, helping transform key sectors and drive progress toward a sustainable future. The GCF's Kavita Sinha highlighted that this partnership will not only aid India’s climate ambitions but also serve as a model for other emerging markets facing similar challenges.