Venture Capitalist Avaana Almost Seals The Final Deal Of It’s Climate Fund At $135 Mn

Manvendra HadaOctober 23, 2024

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Three points you will get to know in this article:

The fund works on three areas: energy and resource management, mobility and supply chains, and sustainable agricultural and food systems.
The venture capital firm has raised funds from a variety of organizations, including GCF, UKIDCF, and SIDBI.
With this fund, the VC company wants to support early stage firms that provide tech-based solutions for climate mitigation and sustainability.

VC Firm Avaana Capital Gets Closer To Completing It’s Climate Fund With Corpus $135 Mn (Around INR 1134 Cr)

Avaana Capital, a climate-focused venture capital firm with portfolio businesses including FarMart, Kazam, and Darwinbox, has closed its early-stage fund at $135 million (approximately INR 1,135 crore).

Avaana Capital, founded in 2018, invests in startups focused on sustainable supply chains across industries, clean transportation, sustainable input platforms, climate-resilient processes, precision agriculture, circular economy platforms, and alternative materials and chemicals.

It is worth noting that the VC firm has exceeded its initial goal corpus of $100-$120 million.

Where Does Avaana Climate and Sustainability Fund Focuses On?

The Avaana Climate and Sustainability Fund focuses on three major sectors: energy and resource management, mobility and supply chains, and sustainable agricultural and food systems, according to a statement from the venture capital business. The fund plans to invest in 20-25 cleantech businesses.

“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,” stated Anjali Bansal, the partner at Avaana

R K Singh, SIDBI’s chief general manager, commented: “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.”

Where Did Avaana Capital Raised Capital From?

The VC fund has received funding from the Green Climate Fund (GCF), the US International Development Finance Corporation (DFC), 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, among others.

In June 2023, the venture capital business raised $70 million to commemorate the first closing in the Avaana Climate and Sustainability Fund. With this, Avaana Capital has already invested in businesses such as Kazam and Dharaksha.

VC Avaana Capital’s Recent Investments?

Dharaksha Ecosolutions, a biotech business, raised INR 24.8 crore ($2.95 million) in a seed fundraising round from Avaana Capital’s fund a month ago to grow its production capacities, accelerate R&D procedures, and strengthen its market position in the sustainable packaging industry.

In May 2023, device-agnostic electric transportation software firm Kazam raised $3.6 million in a round led by Avaana Climate’s fund, with participation from Third Derivative and the startup’s current investors Inflection Point Ventures and We Founder Circle.

Kazam just raised $8 million in its Series A3 funding round, led by Vertex Ventures Southeast Asia and India.