SBI Ventures Plans to Unveil ₹2,000 Crore Fund for Climate Startups in January-March

SBI Ventures, an investment manager promoted by State Bank of India, plans to raise a ₹2,000 crore fund aimed at climate-related startups. The fund is expected to be launched in the January-March period next year, as mentioned at the IVCA Green Returns Summit. 

Where the Money Will Go 

The fund will invest in young and growing climate businesses. The areas it is looking at include cooling systems, low-carbon materials, waste and circularity solutions, nature-based technologies, and the use of artificial intelligence in climate work. These sectors are still developing and require funding to grow and scale commercially. 

Plans for Investors 

SBI Ventures plans to involve both Indian and overseas investors to build the corpus. The outreach will start through investor roadshows early next year. This will be the firm’s third fund focused on climate-related investment, following earlier vehicles that backed startups in the sustainability space. 

India’s Climate Funding Needs 

During the summit, the company pointed out that India’s climate goals need around $170 billion each year. Current funding is said to be about one-third of what is required. The areas with the largest gaps include water security, climate-resilient farming, and infrastructure to withstand extreme weather-related risks. 

Push for Mixed Funding Sources 

The company highlighted that climate finance cannot depend only on equity. It stressed the need for a mix of funding sources such as concessional capital, philanthropic support, and newer structures like carbon markets and climate-resilience bonds. These tools are seen as necessary to support early technologies and reduce risks for investors. 

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Conclusion 

Once raised, the corpus will be directed towards early and growth-stage climate companies. The initiative outlines the scale of funding needed for climate targets in India. 

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