Swedish development finance institution Swedfund has committed $35 mn to South Asia Growth Fund IV (SAGF IV), a private equity fund targeting growth-stage companies in India that are working to reduce emissions and improve climate resilience. The fund will invest in renewable energy, water management and sustainable agriculture.

Swedfund said the commitment would provide long-term growth capital to businesses developing low-carbon products and services. The investment comes as India faces rising energy demand, water stress and greater exposure to extreme weather events, increasing the need for private capital supporting climate-focused solutions.

SAGF IV has a target size of $600 mn, with Swedfund’s commitment forming part of a planned first close involving other international development finance institutions and private investors. The fund is managed by GEF Capital Partners, which has focused on environmental and resource-efficiency sectors since 2018 and has a dedicated team in Mumbai.

The fund’s strategy is centred on identifying growth-stage businesses that can deliver measurable environmental benefits while expanding commercially. Its investment focus includes renewable energy supply chains, water management and sustainable agriculture, with the objective of improving resource efficiency and strengthening resilience across important economic sectors.

Swedfund has previously invested in South Asia Growth Fund II and South Asia Growth Fund III, and participated in a co-investment in Arya.ag in 2025. The latest commitment builds on that relationship and reflects the institution’s focus on financing businesses supporting sustainable development, job creation and India’s transition towards a more resource-efficient economy.