Avaana Capital, a climate-technology investor, has received an investment of $120 million, including $24.5 million from  the Green Climate Fund (GCF), in the “Avaana Climate and Sustainability.”

The investment is expected to support the company’s efforts to foster climate innovation and sustainability in India.

GCF is dedicated to supporting developing countries in implementing climate action projects. It commits financial resources for the adaptation and mitigation of climate change effects, targeting key areas such as energy transition and mobility.

This is the first time GCF has financed a climate venture fund in India.

“The Green Climate Fund’s investment in India’s first tech-led climate VC underscores the transformative impact that technology and innovation have in carving low-emission and climate-resilient development pathways,” said Anjali Bansal, Managing Founder at Avaana Capital.

The company claimed that the partnership between the two indicates a collaborative effort towards driving climate resilience and sustainable development. “It also further highlights the potential that India presents in developing solutions for mitigation and adaptation that are affordable and inclusive, enabling a just transition,” she added.

The investment also saw the Small Industries Development Bank of India (SIDBI), one of Avaana’s partners, participate as the GCF’s accredited entity.

“The Green Climate Fund is proud to partner with Avaana Capital, and SIDBI, a GCF Direct Access Entity, to support the Avaana Sustainability Fund that aims to support the commercialization of local, early-stage climate technology ventures. These climate technology ventures will enable India’s transition to a low emission, climate-resilient future,” said Kavita Sinha, Director at GCF Private Sector Facility.

GCF has financed adaptation and mitigation of climate change effects in the past, targeting key areas such as energy transition, mobility, supply chains, sustainable agriculture, and food systems.

In 2021, GCF approved the Dutch bank FMO’s proposal to accelerate private and public sector investment in India’s green infrastructure projects.

Last March, Avaana Capital also led a pre-series A funding round to help Aerem secure $1.5 million in debt financing from financial institutions to broaden the company’s creative solar tech and financing options.