![]() Says Anjali Bansal, who runs Avaana Capital, a large climate-tech venture capital fund: “This is only the beginning." Sustainability, much like the digital revolution was, will be the next big sea change “and thus a large and attractive opportunity to invest in technology for global green solutions." As India grows and energy consumption rises, she says there’s a recognition “we have so much building to do-we can do it right, right from the start." While early-stage investing around climate tech is gathering momentum, there’s still a paucity of domestic venture capital for the later stages, when working capital needs to rise: the missing middle. Instead, they’ve chosen to solve transition problems in India. They could have probably had their pick of jobs in Silicon Valley. As one investor told me, these founders are putting not just their capital, but their time, energy and conviction behind these startups. India’s market for climate-tech solutions isn’t just a massive technology shift, but an affordable energy transition.Įntrepreneurs are working on projects from battery swapping and EV chargers to carbon accounting, as well as new ways to boost farm efficiency and public awareness. They’re bringing down the cost of commuting. The economic case for going electric is real, as the large-scale adoption of two- and three-wheeler EVs and e-buses shows, Road Transport and Highways Minister Nitin Gadkari told me in an interview. Banks are offering green car loans, while non-banking financial institutions are extending credit too. To fund electrification, the government is working with the World Bank to put in place an instrument to reduce risk in financing EVs. As thousands of miles of highways are being built, nascent electric-vehicle-charging-station firms are cropping up along with those making batteries and EVs. Mobility and transportation have drawn much of the early-stage investment so far, which makes sense: The sector accounts for over 10% of India’s emissions. ![]() Now big money is going into green projects. India’s post-Covid resurgence has been backed by better roads and infrastructure and a manufacturing turnaround. Even in the US, tax credits and incentives have been the drivers of change. In China, carrot-and-stick policies and subsidies were rolled out for it. India’s conviction to go green stands in stark contrast to how such shifts have transpired elsewhere.
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