SBI Ventures Plans Rs 20 Billion Climate Fund For 2025
ECONOMY & POLICY

SBI Ventures Plans Rs 20 Billion Climate Fund For 2025

SBI Ventures, the alternative asset management arm backed by the State Bank of India, is preparing to launch a Rs 20 billion climate-focused fund in the January–March quarter of 2025. The fund will target early and growth-stage climate-tech startups, with a particular focus on frontier technologies and AI-driven climate solutions, according to media reports.

The plan was outlined at the second edition of the IVCA Green Returns Summit, where the firm presented its strategy to expand capital access for green innovation. SBI Ventures intends to engage both domestic and international investors, with roadshows set to begin early next year to secure formal commitments.

The company said India is increasingly becoming a testing ground and launchpad for climate-focused technologies across cooling systems, low-carbon materials, nature-based solutions, waste management and circularity. It emphasised that India requires nearly USD 170 billion each year to meet its climate goals, far beyond current investment flows.

SBI Ventures noted that the most significant financing gaps exist in climate adaptation and resilience, including water security, climate-smart agriculture and disaster-resilient infrastructure. It stressed the need for a multi-layered climate-finance ecosystem that blends equity, concessional finance, philanthropic capital and innovative instruments such as climate resilience bonds and carbon markets.

The firm added that scaling blended finance, de-risking emerging technologies and strengthening institutional capacity across the investment chain will be critical in supporting India’s shift towards a more climate-resilient economy.

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SBI Ventures, the alternative asset management arm backed by the State Bank of India, is preparing to launch a Rs 20 billion climate-focused fund in the January–March quarter of 2025. The fund will target early and growth-stage climate-tech startups, with a particular focus on frontier technologies and AI-driven climate solutions, according to media reports. The plan was outlined at the second edition of the IVCA Green Returns Summit, where the firm presented its strategy to expand capital access for green innovation. SBI Ventures intends to engage both domestic and international investors, with roadshows set to begin early next year to secure formal commitments. The company said India is increasingly becoming a testing ground and launchpad for climate-focused technologies across cooling systems, low-carbon materials, nature-based solutions, waste management and circularity. It emphasised that India requires nearly USD 170 billion each year to meet its climate goals, far beyond current investment flows. SBI Ventures noted that the most significant financing gaps exist in climate adaptation and resilience, including water security, climate-smart agriculture and disaster-resilient infrastructure. It stressed the need for a multi-layered climate-finance ecosystem that blends equity, concessional finance, philanthropic capital and innovative instruments such as climate resilience bonds and carbon markets. The firm added that scaling blended finance, de-risking emerging technologies and strengthening institutional capacity across the investment chain will be critical in supporting India’s shift towards a more climate-resilient economy.

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