Date: July 10, 2025
India’s battle against climate change is gaining unprecedented momentum, fueled by a surge of innovative startups and the visionary investors backing them. The Google Trends keyword “Investor Theses: 10 Funds Betting Big on Climate Startups” has captured global attention, reflecting the growing focus on financial forces powering green innovation. In India, where environmental challenges like air pollution, water scarcity, and renewable energy adoption loom large, climate startups are emerging as game-changers. This article dives into the top 10 funds pouring capital into India’s climate tech ecosystem, highlighting their investment strategies and the startups transforming the nation’s sustainability landscape.
Table of Contents
The Climate Imperative in India
India, the world’s third-largest emitter of CO2, faces immense pressure to balance economic growth with environmental sustainability. With ambitious targets like achieving net-zero emissions by 2070 and scaling renewable energy to 500 GW by 2030, the country is fertile ground for climate tech innovation. Startups in cleantech, agritech, and green mobility are tackling these challenges head-on, supported by a wave of investor enthusiasm. The rise of climate-focused venture capital signals a pivotal shift, with funds prioritizing startups that blend profitability with planetary impact.
Top 10 Funds Powering India’s Climate Tech Boom
1. Ankur Capital: Agritech and Climate Resilience
Key Focus: Ankur Capital is a leader in backing agritech and climate-resilient startups. Their investment in Bengaluru-based String Bio, which converts methane into sustainable proteins, showcases their commitment to circular economy solutions. With 15 deals in 2024, Ankur is betting big on startups addressing food security and carbon reduction.
2. Omnivore: Sustainable Agriculture
Key Focus: Omnivore focuses on agritech startups revolutionizing India’s farming sector. Their portfolio includes Chennai-based Ecozen, which develops solar-powered cold storage solutions for farmers. Omnivore’s $150 million fund, raised in 2024, is dedicated to climate-smart agriculture, with 12 deals in the past year.
3. Energy Transition Fund (SBI): Clean Energy Giants
Key Focus: Backed by the State Bank of India, this fund targets large-scale clean energy projects. Their investment in Hyderabad-based ReNew Power, a renewable energy leader, underscores their focus on scaling solar and wind energy. The fund’s $200 million corpus is driving India’s renewable energy transition.
4. Blume Ventures: Green Tech Innovators
Key Focus: Blume Ventures has pivoted toward climate tech, backing startups like Log9 Materials in Bengaluru, which develops advanced EV batteries. With 10 climate-focused deals in 2024, Blume is prioritizing startups with scalable, high-impact solutions.
5. Aavishkaar Capital: Impact-Driven Investments
Key Focus: Aavishkaar’s impact-first approach has led to investments in startups like Mumbai-based Mufin Green Finance, which provides financing for electric vehicles. Their $250 million climate fund targets underserved markets, with a focus on Tier 2/3 cities.
6. Lightspeed India: Mobility and Energy
Key Focus: Lightspeed India is doubling down on green mobility and energy storage. Their investment in Gurugram-based Exponent Energy, which offers 15-minute EV charging solutions, highlights their focus on disruptive technologies. Lightspeed closed 8 climate deals in 2024.
7. Omidyar Network India: Social and Environmental Impact
Key Focus: Omidyar Network India supports startups blending social and environmental impact. Their backing of Pune-based Greenway Grameen, which produces clean cooking solutions, reflects their mission to address rural energy challenges. They’ve funded 7 climate startups since 2023.
8. Sequoia India (Peak XV Partners): Scalable Climate Solutions
Key Focus: Peak XV Partners, formerly Sequoia India, is investing in scalable climate tech. Their portfolio includes Delhi-based BluSmart, an EV ride-hailing platform. With a $2 billion fund, Peak XV is a heavyweight in India’s climate startup ecosystem.
9. Avaana Capital: Decarbonization Champions
Key Focus: Avaana Capital is dedicated to decarbonization, backing startups like Bengaluru-based Varaha, which uses AI to measure soil carbon sequestration. Their $135 million climate fund has supported 9 startups, emphasizing measurable environmental impact.
10. 3one4 Capital: Deeptech and Cleantech
Key Focus: 3one4 Capital focuses on deeptech solutions for climate challenges. Their investment in Chennai-based Planys Technologies, which develops underwater drones for renewable energy infrastructure, showcases their innovative approach. They’ve funded 6 climate startups in 2024.
Why Climate Tech? The Investor Thesis
Investors are drawn to climate tech for its dual promise of profitability and impact. According to a 2024 report by Nasscom, India’s climate tech sector attracted $1.2 billion in funding, a 40% increase from 2023. Key drivers include:
- Policy Support: Government initiatives like the National Green Hydrogen Mission and PM Suryaghar Yojna are creating a conducive environment for climate startups.
- Consumer Demand: Rising awareness of sustainability among Indian consumers is boosting demand for green products, from EVs to clean energy solutions.
- Global Capital Flows: International funds are increasingly eyeing India’s climate tech market, drawn by its scale and growth potential.
- Technological Advancements: AI, IoT, and blockchain are enabling startups to create efficient, scalable solutions for climate challenges.
The shift toward climate tech reflects a broader trend of responsible capitalism, where funds prioritize long-term sustainability over short-term gains. As Anjali Bansal, founder of Avaana Capital, told Business Standard, “Climate tech is not just a sector; it’s a necessity for India’s future.”
Standout Startups in the Spotlight
Several startups backed by these funds are making waves:
- String Bio (Ankur Capital): Converts methane into sustainable proteins, reducing agricultural emissions.
- Ecozen (Omnivore): Offers solar-powered cold storage, helping farmers reduce post-harvest losses.
- Log9 Materials (Blume Ventures): Develops fast-charging EV batteries, accelerating India’s green mobility transition.
- BluSmart (Peak XV Partners): Operates India’s largest EV ride-h Dependence on fossil fuels.
Challenges in the Climate Tech Landscape
Despite the optimism, climate startups face hurdles. High capital intensity is a major challenge, as clean energy and deeptech solutions require significant upfront investment. Regulatory complexities, such as delays in environmental clearances, can slow progress. Additionally, talent shortages in niche areas like green hydrogen and carbon capture pose risks.
However, investors are tackling these challenges through strategic partnerships. For instance, Avaana Capital collaborates with incubators to provide mentorship, while Omnivore works with agricultural universities to bridge talent gaps.
The Road Ahead: A Green Revolution Unfolds
India’s climate tech ecosystem is at an inflection point. With supportive policies, growing consumer awareness, and robust investor backing, the sector is poised for exponential growth. The 10 funds highlighted here are not just investing capital but also fostering innovation that could redefine India’s environmental trajectory.
The global spotlight on India’s climate startups is intensifying, as evidenced by the trending keyword “Investor Theses: 10 Funds Betting Big on Climate Startups.” These funds are betting on startups that can deliver both financial returns and measurable impact, from reducing carbon emissions to empowering rural communities. As India races toward its 2070 net-zero goal, these investors and their portfolio companies are laying the foundation for a sustainable future.
Conclusion: A Call to Action
The surge in climate-focused venture capital is a testament to India’s potential as a global leader in green innovation. The 10 funds driving this revolution are not just investors—they are architects of a greener tomorrow. From agritech to green mobility, their bets are powering startups that address India’s most pressing environmental challenges. As climate tech gains traction, the message is clear: the time to invest in India’s green future is now, and these funds are leading the charge with unwavering conviction.
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Last Updated on Thursday, July 10, 2025 5:14 pm by Siddhant Jain
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