The fund focuses on energy & resource management, mobility & supply chains, and sustainable agriculture & food systems.
The VC firm has raised capital from various institutions including GCF, UKIDCF, and SIDBI among others.
With this fund, the VC firm aims to back early stage startups providing tech-based solutions for climate mitigation and sustainability
Climate-focused venture capital firm Avaana Capital, which counts FarMart, Kazam and Darwinbox among its portfolio companies, has marked the final close of its early stage fund at $135 Mn (around INR 1,135 Cr).
The Avaana Climate and Sustainability Fund focuses on three core sectors – energy & resource management, mobility & supply chains, and sustainable agriculture & food systems, the VC firm said in a statement. The fund aims to invest in 20-25 startups in the cleantech space.
It is pertinent to note that the VC firm has exceeded its initial target corpus of $100-$120 Mn.
“The Avaana Climate & Sustainability Fund will help build the next generation of climate-first companies to transform key sectors and make meaningful progress toward a sustainable future,” said Avaana Capital’s partner Anjali Bansal.
The VC fund has raised capital from the Green Climate Fund (GCF), US International Development Finance Corporation (DFC), UK- India Development Cooperation Fund (UKIDCF), the Self Reliant India (SRI) Fund, Small Industries Development Bank of India (SIDBI), and Azim Premji Trust among others.
SIDBI’s chief general manager R K Singh said “The Avaana Climate and Sustainability Fund aligns perfectly with our mission by supporting innovative, climate-tech startups that are key to India’s transition to a sustainable, low-carbon economy.”
In June 2023, the VC firm raised $70 Mn to mark the first close in Avaana Climate and Sustainability Fund. With this, Avaana Capital already invested in startups including Kazam and Dharaksha.
A month ago, biotech startup Dharaksha Ecosolutions raised INR 24.8 Cr ($2.95 Mn) in a seed funding round from Avaana Capital’s fund to expand its production capabilities, intensify R&D practices and strengthen market presence in the sustainable packaging industry.
In May 2023, device agnostic electric mobility software startup Kazam raised $3.6 Mn in a round led by Avaana Climate’s fund, with participation from Third Derivative and the startup’s existing investors Inflection Point Ventures and We Founder Circle.
Few days back, Kazam raised $8 Mn in its Series A3 funding round led by Vertex Ventures Southeast Asia and India.
Founded in 2018, Avaana Capital invests in startups that work on sustainable supply chains across industries, clean transport, sustainable input platforms, climate-resilient processes, precision agriculture, circular economy platforms as well as alternative materials and chemicals.
