FY2025 kicks off with close to $260 million in investments in climate-centric innovative enterprises in the first quarter. Investment flows have increased by more than 20% from the immediate preceding quarter, with few notable investment trends standing out.
Sustainable Mobility, a clear dominant area under climate-tech investing, raised $182 million in the period of April to June 2024. While EV OEMs and electric battery charging solution providers continue to raise funds, the ecosystem is also witnessing newer early-stage innovations attracting investor interest.
Electric tractor startup - AutoNxt Automation raised $3 million of Seed funding while BluWheelz - a mid-mile and last-mile logistics solutions company with an EV fleet also raised $1 million. PointO - an EV battery startup that raised $0.74 million, is building an eco-system for 3-wheeler
e-vehicles and facilitating under-served drivers generate income by assisting the driver’s family by providing them with family as well as battery insurance. We observe these innovations bringing the electric vehicle ecosystem to the mid and last mile with commercial as well as impact investors demonstrating interest.
The highest funding in this segment was $45 million, raised by the battery swapping network Battery Smart, from impact investors such as British International Investment and Ecosystem Integrity Fund, along with other commercial investors, while other players like Euler Motors and Matter raised upwards of $10 million each.
While ‘Sustainable Mobility’ continues to attract the highest portion of investments, the ‘Climate-Smart Agriculture & Food’ segment has witnessed a notable increase, contributing approximately 15% of sectoral investments in this quarter. This surge is primarily due to Ecozen, which offers solar-powered cold storage rooms and pump controllers. With strong demand for their existing products and a vision to leverage their tech stack across different sectors1, Ecozen has cumulatively raised a $33 million Later Stage funding.
Water technology innovator - Solinas Integrity raised an undisclosed amount of funding from impact focused investors - Neev Fund II and Rainmatter Capital.
In the ‘Waste Management & Circular Economy’ space what stands out is the nature of innovations getting funded. Given the diverse nature of waste, we observe recycling and upcycling solutions, dedicated to specific forms of waste, as well as eco-friendly sustainable consumables receiving funding.
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Tyre recycling startup raised Seed funding of $2 million in May 2024.
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Clean tech startup specializing in wet waste management solutions to partners in the Food & Beverage segment, commercial complexes as well as residential societies. It raised Seed funding of $0.19 million.
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Bamboo-based kids fashion wear raised an undisclosed amount of Series A funding in May 2024.
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Developed a decentralized waste incinerator using clean energy to treat waste directly at its source. It raised Seed funding of $1.5 million in June 2024.
The highest fundraise in this sector is by Recykal, which connects stakeholders across a digitized waste management ecosystem, raised $13.2 million.
Stage Wise Snapshot
Sector Wise Analysis
*Amounts mentioned in USD Mn
Note: In our previous edition of Climate Bulletin, we had recorded Lohum Cleantech's March 2024 deal as $54 million. However, upon clarification from the company, we learnt that the Series B round occurred in two tranches: $23 million in February 2024 and $31 million in March 2024, totaling $54 million. Therefore, in this edition of climate bulletin, we have revised the reported deal amount to $31 million, hence you might a difference between total value of investments of (Jan'24 - Mar'24) in this edition and our previous edition.
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