SBI Ventures Plans Rs 20 Billion Climate-Tech Fund
ECONOMY & POLICY

SBI Ventures Plans Rs 20 Billion Climate-Tech Fund

SBI Ventures, the alternative asset management arm promoted 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 invest in early and growth-stage climate-tech start-ups, with a particular focus on frontier technologies and AI-enabled climate solutions, according to media reports.

The plan was outlined at the second edition of the IVCA Green Returns Summit, where the firm detailed its strategy to expand the pool of capital available for green innovation. SBI Ventures will engage both domestic and global investors, with roadshows scheduled to begin early next year to secure commitments.

The company noted that India is increasingly becoming a testbed and launchpad for climate-oriented technologies, spanning cooling systems, low-carbon materials, nature-based solutions, waste management and circularity. It emphasised that the country needs nearly USD 170 billion each year to meet its climate commitments — a level far exceeding current investment flows.

SBI Ventures highlighted that the largest financing gaps exist in climate adaptation and resilience, particularly in water security, climate-smart agriculture and disaster-resilient infrastructure. It stressed the need for a layered climate-finance ecosystem that blends equity, concessional funding, philanthropic participation and 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 crucial to supporting India’s transition to a more climate-resilient economy.

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SBI Ventures, the alternative asset management arm promoted 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 invest in early and growth-stage climate-tech start-ups, with a particular focus on frontier technologies and AI-enabled climate solutions, according to media reports. The plan was outlined at the second edition of the IVCA Green Returns Summit, where the firm detailed its strategy to expand the pool of capital available for green innovation. SBI Ventures will engage both domestic and global investors, with roadshows scheduled to begin early next year to secure commitments. The company noted that India is increasingly becoming a testbed and launchpad for climate-oriented technologies, spanning cooling systems, low-carbon materials, nature-based solutions, waste management and circularity. It emphasised that the country needs nearly USD 170 billion each year to meet its climate commitments — a level far exceeding current investment flows. SBI Ventures highlighted that the largest financing gaps exist in climate adaptation and resilience, particularly in water security, climate-smart agriculture and disaster-resilient infrastructure. It stressed the need for a layered climate-finance ecosystem that blends equity, concessional funding, philanthropic participation and 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 crucial to supporting India’s transition to a more climate-resilient economy.

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