Early-stage venture capital firm Green Frontier Capital on Wednesday said it has launched its Green Frontier Capital India Climate Opportunities Fund, with a target corpus of Rs 1,500 crore ($178 million).
The fund will focus on accelerating India’s low-carbon transition with Seed to Series A investments in transformative climate technologies.
With India aiming to achieve net zero emissions by 2070, investors have now woken up to the rising opportunities in the climate tech sector, readying pools of capital to invest in green energy areas promoting sustainable development.
With India targeting net-zero emissions by 2070, investors are increasingly tapping opportunities in the climate tech sector and are preparing substantial capital pools for green energy initiatives.
Apart from Green Frontier, active investors in India’s climate tech space include Northern Arc, Avaana Capital Blue Ashva, Speciale Invest, Omnivore, Climate Seeds Fund, Asha Ventures, Transition VC, Climate Angels, EverSource Capital and Avaana Capital.
Among limited partners, British International Investment is also actively scouting for climate finance opportunities in the country.
The capital that LPs have committed to climate-focused fund managers over the past two years has witnessed a sudden spike, compared to the previous years, according to data available from research firm Venture Intelligence.
As many as 13 climate-focused funds raised $719 million in 2023, while another six funds raised a record $989 million in 2022. In the previous year, when awareness was relatively lower, only two climate funds garnered commitments, cumulatively worth $90 million; while in 2020, one climate-tech fund raised a meagre $31 million.
Other fund managers that have rolled out their opportunities funds include Inflexor Ventures, Singularity Early Opportunities Fund,Capria Ventures, etc.
Other investments by Green Frontier in India include BluSmart Mobility, ElectricPe, Euler Motors, Zero Cow Factory, etc.
