In the ever-changing landscape of 2023, climate tech startups in India experienced a surge in funding, marking a positive shift for the sector. Meanwhile, Blume Ventures’ fund report card reveals impressive returns, showcasing the success of their early-stage investments.
Climate Tech: A Bright Year
After enduring a prolonged winter, climate tech startups witnessed a funding boost in 2023. Sectors like e-mobility and renewable energy attracted significant investments, with the EV sector alone raising $667.9 million in the first 10 months. Clean energy also thrived, securing $390.3 million, fueled by mega-deals like CleanMax Solar’s $360 million funding.
Breakdown of Funding Climate
Despite the overall success, certain sectors faced challenges. Waste and effluent treatment struggled to attract investments, highlighting India’s lag in turning waste into resources. Food, agriculture, and clean water, essential areas for the country, received comparatively less funding. The climate tech sector, as a whole, amassed $1.23 billion across 55 funding deals, with early-stage rounds dominating in clean energy, water, waste, and food and agriculture.
Empowering Sikkim’s Tribal Women
Rinzing Choden Bhutia, founder of Agapi Sikkim, empowered tribal women in Sikkim through organic skincare. Bhutia’s initiative trained women in crafting handcrafted soaps and skincare products, providing a platform for them to connect, share, and learn. The project evolved into a self-help group, impacting over 400 women and contributing to the socio-economic fabric.
Blume Ventures’ Fund Success
Blume Ventures, an early-stage VC firm, celebrated a 5X gross return from its first fund launched in 2011. Anticipating a 6X return in 2024, the firm highlighted the success of Fund 1, which initially raised Rs 98 crore and later received Rs 24.5 crore as Fund 1A in 2013. The fund, supported by 80 domestic investors, demonstrated impressive returns and is set to close its lifecycle in 2023.
News and Updates Climate
In other notable news, Apple faces a smartwatch sales halt in the US due to a patent dispute, while Japan’s BOJ Governor’s remarks impact the yen against the dollar. India’s IT firms adapt to tougher contract terms amid global economic uncertainties.
Conclusion
The year 2023 showcased a positive trajectory for climate tech startups, with significant funding and sector-specific successes. Blume Ventures’ fund performance added to the upbeat scenario, underlining the potential and resilience of the Indian startup ecosystem in navigating challenges and achieving noteworthy milestones.
