SBI Ventures plans to launch Rs 2,000-crore climate-focussed fund

SBI Ventures, an investment firm backed by State Bank of India (SBI), plans to raise Rs 2,000 crore for its third climate-focused fund, which will invest in startups.

This fund will help support green growth and create new financial opportunities, SBI Ventures Managing Director and CEO Prem Prabhakar said at the second IVCA Green Returns Summit.

Read also- Yatra CEO Dhruv Shringi Resigns; Siddhartha Gupta takes charge

He said the fund will bring in both Indian and international investors, and the fundraising roadshow will begin early next year.

"We are targeting to launch a Rs 2,000 crore fund in the first quarter of the next calendar year," he added.

The fund will invest in early- and growth-stage climate startups, focusing on advanced climate technologies and AI-powered climate innovations.

He added that India is becoming a hub for global climate innovation, especially in areas like cooling technologies, low-carbon materials, nature-based solutions, waste management, and circular economy solutions.

Advertisment

He said the biggest funding gaps are in adaptation and resilience areas such as water security, climate-smart farming, and disaster-resistant infrastructure.

He also urged the need for a multi-layered climate financing model that mixes equity, low-cost capital, philanthropic support, and innovative tools like climate resilience bonds and carbon markets.

"Climate finance cannot rely on equity alone," he said, adding that the ecosystem needs to scale blended finance, de-risk first-of-its-kind technologies, and build institutional capacity across the investment chain.

Want to go deeper into the world of startups and entrepreneurship? Check out these categories on VIESTORIES:

Latest Business and Startup News: Discover Funding Trends and Stories Shaping Indian Startups.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Advertisment

Startup Stories: Discover inspiring tales of startups overcoming challenges, and achieving success.