Avaana Capital is a climate -focused ventured capital firm, has closed its $135 million Avaana Climate and Sustainability Fund.

Avaana Capital says that the funds saw support from institutional investors, including the Green Climate Fund (GCF). Other key participants include U.S. International Development Finance Corporation (DFC), UK Government through UK- India Development Cooperation Fund (UKIDCF), the Self Reliant India (SRI) Fund and Small Industries Development Bank of India (SIDBI), Azim Premji Trust and several large corporations.

The Mumbai-based firm will invest in early-stage companies that use technology to create scalable solutions for climate mitigation, and adaptation, and help India’s journey to net zero.

Led by Anjali Bansal and Swapna Gupta, the Avaana Climate and Sustainability Fund will also invest in tech-driven and innovative climate solutions. Its notable portfolio investments include Eeki Foods, Aerem, Kazam, and Sentra.world, FarMart, Eggoz, Ninety One 91, Turno and Terra.do.

In June last year, Avaana Capital had raised $70 million for the first close of its Avaana Climate and Sustainability Fund.

According to Bansal, “The biggest investment opportunities, and subsequently returns, come from innovations in areas that are undergoing large transitions. If you look at the two mega trends playing out in the world right now … first is artificial intelligence and everything that comes with it and the second is climate change”.

She further added that, “The thesis behind creating the Avaana climate fund is that…much like the digitization was the story of the last 30 years, which changed how we live, work and interact, sustainability is the next big problem to solve. It’s a significant transition in our social systems”.