Climate-focussed venture capital firm Green Frontier Capital, which has backed companies such as BluSmart, Battery Smart, KisanKonnect, Nutrifresh, and ElectricPe, has launched its maiden SEBI-approved alternative investment fund.
The Green Frontier Capital India Climate Opportunities Fund, which has a targeted corpus of Rs 1,500 crore, will focus on investing in “transformative” climate technologies, the firm said Wednesday.
Green Frontier Capital said that it has structured the fund to provide India-based investors an opportunity to back local ventures, aligning with the country’s sustainable development goals. The fund will primarily invest in Indian companies from seed to Series A stages that are advancing decarbonization, digitization, and other technologies contributing to a sustainable future.
“India is at the heart of the global climate action narrative. As the only large economy in the globe that is expected to quadruple its GDP over the next two decades, the choices India makes today will have global implications,” said Sandiip Bhammer, founder and managing partner of Green Frontier Capital.
“Our goal is to back companies with the potential to become category leaders and deliver venture-scale returns while aligning with India’s ambitions for sustainable growth,” Bhammer added.
The fund’s strategy focuses on three key pillars: digitisation, decarbonisation, and disruption. Under the digitisation theme, it will invest in Internet of Things, big data, and AI to optimize resources and drive sustainable growth.
Under the decarbonisation umbrella, it will target technologies that reduce emissions across critical industries. As part of its thesis for investment under the disruption theme, it will back emerging solutions in biological intelligence and other fields that reshape sustainability, food systems, and life sciences.
As of early 2024, the firm has deployed about $30 million primarily across the electric vehicle and consumer lifestyle segments. It was looking to broaden its investment areas to waste management, biodiversity, plastic circularity, and green hydrogen, Bhammer had told VCCircle.
