India’s climate-tech sector is experiencing a major boom, with $2.6 billion invested in 2024 a 43% rise from 2023. This surge is driven by India’s Net Zero by 2070 goal, favorable government policies (like PLI schemes for EVs and solar), and growing consumer demand for sustainable solutions. Several top venture capital (VC) firms are making strategic bets on climate innovation across clean energy, mobility, packaging, and waste management positioning themselves to benefit from India’s projected $15 trillion green economy by 2047.
Green Frontier Capital is India’s first venture capital fund dedicated to sustainable finance, focusing on growth-stage companies delivering breakthrough innovations in green industries. Their portfolio emphasizes decarbonization and alignment with UN Sustainable Development Goals, targeting sectors like electric vehicles (EVs) and renewable energy.
Green Frontier’s portfolio reflects a strategic focus on climate-tech, leveraging India’s EV market growth and renewable energy targets to deliver both environmental impact and financial returns.
Big Bets:
Chupps- Chupps is an Indian D2C footwear brand known for stylish, comfortable, and sustainable open footwear like sliders and flip-flops.
ElectricPe- ElectricPe is an Indian EV super-app promoting sustainable mobility by providing easy access to electric vehicle discovery, charging, and community services.
Emotorad- Emotorad is an Indian e-bike brand driving sustainable urban mobility by offering eco-friendly, zero-emission electric bicycles.
Accel India, a leading venture capital firm known for backing early-stage giants like Flipkart and Freshworks, is now turning its focus to climate-tech and sustainable consumer goods. This shift reflects a growing recognition that the future of innovation lies in solving climate and sustainability challenges.
India’s urgent environmental needs, favorable government policies, and rising consumer demand for eco-friendly products create a ripe opportunity for startups in green mobility, clean energy, and conscious consumerism. Accel sees these sectors as both impactful and commercially scalable.
With its tech-first approach and strong operational support, Accel is backing ventures that align environmental responsibility with long-term profitability betting not just on high returns, but on a more sustainable future for India and beyond.
Big Bets:
Fuse- Fuse Energy is a UK-based app-driven electricity supplier investing in renewable projects, though only a small portion of its supplied power comes from its own green sources.
Opower- Opower uses behavioral science and data analytics to help utility customers reduce energy consumption through personalized insights and comparisons.
3. Blume Ventures
Blume Ventures, a prominent early-stage VC firm, is actively investing in tech-driven startups that address urban environmental challenges and advance green hydrogen innovation. With a clear focus on aligning with India’s sustainability ambitions and global ESG mandates, Blume is positioning itself at the forefront of climate-tech.
A key area of focus is India’s emerging green hydrogen economy, projected to reach $8 billion by 2030. As outlined in their Green Hydrogen BLUprint (January 2024), Blume is strategically backing startups working across the hydrogen value chain spanning production, storage solutions, and fuel cell technologies. These investments aim to support scalable innovations that can decarbonize heavy industries and transportation while contributing to India’s clean energy targets.
By focusing on urban tech and climate innovation, Blume Ventures is not only backing high-potential startups but also helping to build a sustainable, low-carbon future for India.
Big Bets:
Aerem-Aerem is an Indian solar technology and financing platform accelerating rooftop solar adoption for MSMEs and residential customers through digital solutions and collateral-free loans.
Bambrew- Bambrew is a cleantech startup providing sustainable, plastic-free packaging solutions made from bamboo and natural fibers to reduce single-use plastic waste.
Lightbox Ventures, known for backing consumer-driven and tech-enabled startups, is increasingly prioritizing sustainability in its investment thesis. The firm is actively supporting ventures in sustainable consumer goods and clean energy solutions, aligning with India’s growing demand for eco-conscious products and climate-resilient services.
The firm sees sustainability not just as a moral imperative, but as a strategic advantage in addressing India’s evolving consumer needs and resource challenges. With environmental pressures mounting and regulatory landscapes shifting, Lightbox believes that startups solving for climate resilience and ecological balance represent some of the most significant growth opportunities in the coming decade.
Big Bets:
WayCool- WayCool is a sustainability-focused agri-tech startup that leverages technology to create a more efficient and eco-friendly food supply chain, reducing waste and promoting sustainable farming practices.
5. Kalaari Capital: Driving Sustainability Through Tech Innovation
Kalaari Capital, a leading venture capital firm, invests in technology-driven startups with a growing focus on sustainability, particularly in renewable energy and green mobility. As climate and ESG considerations become central to investment strategies, Kalaari is aligning its portfolio with India’s green economy ambitions and global investor demand for responsible, future-ready ventures.
By backing startups that enable cleaner energy systems, low-emission transportation, and climate-resilient infrastructure, Kalaari is helping shape a new generation of companies that combine tech innovation with environmental impact.
Big Bets:
Clean Electric- Clean Electric is an Indian climate tech startup pioneering ultra-fast, safe, and scalable EV battery technology to accelerate sustainable electric mobility.
Climes: Climes is a climate tech startup providing digital tools for carbon accounting, carbon credit purchases, and engaging consumers in scalable climate action.
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