Avaana Capital

Avaana Capital is a prominent Indian venture capital firm headquartered in Mumbai, distinguished by its strong focus on climate-tech and sustainability. The firm primarily backs technology-led businesses that are developing innovative solutions to address pressing environmental and social challenges. Their investment thesis centers on identifying companies that can deliver both significant financial returns and measurable positive impact across sectors such as energy transition, resource management, sustainable consumption, and climate-resilient agriculture. Avaana Capital seeks to support entrepreneurs who are building scalable and disruptive models that contribute to a more sustainable future.

The firm manages the Avaana Climate and Sustainability Fund (ACSF), which has a target corpus of $150 million. This fund achieved its first close at $60 million in 2022, attracting capital from a diverse base of institutional investors, including development finance institutions, global corporations, and family offices. Avaana Capital typically invests in early-to-growth stage companies, specifically targeting Series A and Series B rounds. Their strategic approach involves not just providing capital but also offering deep sector expertise, operational guidance, and access to their extensive network to help portfolio companies scale effectively.

Avaana Capital's investment strategy is characterized by its commitment to ESG principles and impact measurement, integrating these considerations throughout their due diligence and portfolio management processes. They aim to support companies that are not only financially viable but also demonstrate clear pathways to achieving environmental and social benefits. The firm's typical first cheque size for investments ranges from $3 million to $10 million, reflecting their preference for meaningful stakes in companies poised for significant growth and impact. Through their targeted investments, Avaana Capital plays a crucial role in fostering India's burgeoning climate-tech ecosystem and driving sustainable innovation.