In a major push for climate-focused entrepreneurship, Avaana Capital, an early-stage investment firm, announced the final closing of its climate and sustainability-focused fund at $135 million , surpassing its initial goal of $125 million.

Avaana Capital, known for supporting startups in the consumer, food and agriculture sectors, uses this dedicated fund to support transformative companies that are developing commercially scalable solutions for India’s biggest environmental challenges. The company plans to invest in approximately 20 to 25 early-stage companies through this fund.

According to Anjali Bansal, partner at Avaana Capital, the fund’s investment strategy focuses on sectors responsible for around 90% of India’s emissions and 70% of its economy.

“The thesis here addresses a major problem with equally significant market opportunities,” Bansal said. Avaana Capital aims to make an impact in three main areas: energy and resource management (covering energy transitions, water, land, air and natural resources), food systems (including sustainable agriculture, precision agriculture and biosynthesis) and the circular. the economy (including supply chains, mobility, alternative materials and plastic circularity). By focusing on these areas, Avaana Capital hopes to drive scalable and impactful change that aligns with both India’s economic growth and its environmental commitments.

Bansal noted that the company sees around 1,000 new investment opportunities every year. “When we started, we wondered whether there would be enough investment, and we have now demonstrated that this is certainly the case. We have already made around ten investments, with a target of reaching 20 to 25 for this fund,” added Bansal.

The company’s portfolio includes pioneers such as FarMart, Ekei Foods, Ninety One Cycles and Kazam, each addressing critical sustainability challenges in their respective fields. For example, Ekei Foods is revolutionizing food production by growing tomatoes, cucumbers and eggplants in the deserts of Rajasthan, where temperatures reach up to 50°C, while using 80% less water than agriculture traditional.

The fund’s ambitions are also closely aligned with the broader narrative of climate responsibility and India’s development trajectory. In recent years, Avaana Capital has been instrumental in advancing the climate technology narrative, highlighting the urgency of tackling climate change with speed and scale. Bansal highlighted India’s indispensable role in the global climate solution, saying, “The world cannot solve the climate problem without India, and our approach must balance our development journey with climate solutions,” emphasizing that India’s climate initiatives must work alongside its growth goals.

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