GCF Backs Avaana Capital Major Investment Boost for India’s Sustainable Future

• The partnership between Avaana Capital and the Green Climate Fund exemplifies a collaborative effort towards driving climate resilience and sustainable development

• First Climate Venture Fund in India to be financed by GCF

• Validation for NDC led climate mitigation and adaptation investment strategy focused on technology and innovation and aligned with national priorities

Avaana Capital, known for its thematic strategy and focus on sustainable investments, announces the approval of investment in the “Avaana Climate and Sustainability Fund” by the Green Climate Fund (GCF). With a total value of USD 120 million, including a substantial USD 24.5 million investment from GCF, this initiative marks a significant stride towards fostering climate innovation and sustainability in India. The approval was granted during the 38th Board Meeting of the GCF, held in Kigali, Rwanda, on March 5th, 2024.

Anjali Bansal is the Founding Partner of Avaana Capital

“We are delighted to share the news of the Green Climate Fund Boards approval of Avaana Capitals Climate and Sustainability Fund,” expressed Anjali Bansal is the Founding Partner of Avaana Capital. “This milestone represents the culmination of dedicated efforts, with gratitude extended to the Green Climate Fund team, including Rajeev Mahajan, Ayaka Fujiwara and Donggun Kim, for their unwavering support and guidance throughout this journey. We also acknowledge the leadership of Kavita Sinha and Soji Omisore in making this partnership a reality. This collaboration underscores GCF additionality and our shared commitment to advancing climate action.”

Avaanas collaboration with the GCF highlights the transformative impact of technology and innovation in shaping low-emission and climate-resilient development pathways. “The Green Climate Funds investment in Indias first tech-led climate VC underscores the transformative impact that technology and innovation have in carving low-emission and climate-resilient development pathways,” stated Bansal. “It also further highlights the potential that India presents in developing solutions for mitigation and adaptation that are affordable and inclusive, enabling a just transition.”

The GCF, recognized as the worlds largest climate fund, is dedicated to supporting developing countries in developing and implementing climate action projects. It commits financial resources for the adaptation and mitigation of climate change effects, targeting key areas such as Energy Transition, Mobility, Supply Chains, Sustainable Agriculture, and Food Systems.

Avaana extends its gratitude to mission-aligned institutions, including SIDBIs Green Finance Vertical team, for their invaluable role as the GCF Accredited Entity. The approval of the Avaana Sustainability Fund marks a significant push towards advancing Indias commitment to driving climate innovation and taking action.

“We are grateful for all the support from our partners SIDBI as the Accredited Entity, FCDO, and others,” concluded Bansal.

Kavita Sinha, Director of GCF Private Sector Facility, remarked, “The Green Climate Fund is proud to partner with Avaana Capital, and SIDBI, a GCF Direct Access Entity, to support the Avaana Sustainability Fund that aims to support commercialization of local, early-stage climate technology ventures. These climate technology ventures will enable India’s transition to a low emissions, climate resilient future. This partnership exemplifies our shared commitment to fostering climate resilience and sustainable development in India, especially for those most vulnerable to the impacts of climate change.”

Avaanas philosophy revolves around the belief that substantial outcome creation along India’s path towards net zero emissions necessitates an ecosystem approach, integrating critical elements of technology, policy, industry, and academia. Avaana uniquely integrates and works across four ecosystems: Digital innovation, Industry Linkages, Policy, and Academia, and Catalytic Capital. This approach results in the creation of insights and thought leadership, positioning Avaana at the forefront of emerging technologies and investment areas. The fund follows a proactive thesis-led sourcing approach for tracking high-quality entrepreneurs and follow-on investments in portfolio companies, facilitating their journey to scale.

About Avaana Capital

Avaana Climate and Sustainability Fund, India’s first and largest climate-tech venture capital fund, invests in future market leaders at the early-stage, leveraging technology-led innovation to build and scale solutions for climate and sustainability while delivering exponential returns. Avaana invests in thematic areas of Energy and Resource Management, Mobility and Supply Chains, and Sustainable Agriculture and Food Systems. Since 2018, Avaanas investments feature over 20 startups, including portfolio companies such as FarMart, Ninety One cycles, Kazam, Eeki Foods, Aerem, Sentra, Eggoz, TurnO, and Terra.do. Avaana’s Team has previously made investments in category leaders like Delhivery, Nykaa, Urban Company, Shadowfax, Ninjacart, Moveinsync, and Stellapps.