India’s climate-focused venture capital firm Avaana Capital said on Wednesday it raised $70 million in its first funding round as it looks to invest in the clean energy and climate-technology space.

This is the first close in the Avaana Climate and Sustainability Fund, India’s first tech-led climate fund, meaning it can start investing in companies while raising capital for its own fund.

The fund garnered interest from both domestic and international institutions, including India’s Small Industries Development Bank of India (SIDBI) and UK India Development Cooperation Fund (UKIDCF).

The firm is targeting a total corpus of $100 million to $125 million for the fund, which will focus on investments in three sectors – energy transition and resource management; mobility and supply chains; and sustainable agriculture and food systems.

See related article: Netherlands, Denmark Launch $1 Billion South Africa Green Hydrogen Fund

According to a report by India’s central bank, the country will spend an estimated 85.6 trillion rupees ($1.04 trillion) by 2030 to adapt its various industries to be compliant with climate change norms.

Anjali Bansal, founding partner of the Mumbai-based firm, said the Avaana Climate and Sustainability Fund evaluates over 200 new climate opportunities every quarter.

“With significant global capital flowing, supportive policies, corporate interest and wealth of entrepreneurial talent in the climate sector, India’s climate-tech story is rapidly progressing,” she said in a statement.

Source: Reuters