July 19, 2024
Indian Startup Ecosystem Flourishes with $1.5 Billion in Green Investment
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Indian Startup Ecosystem Flourishes with $1.5 Billion in Green Investment

Jun 8, 2024

Despite a decline in global equity funding for startups, the EnviroTech sector has seen an increase in its share of funding. In 2024, approximately 10 per cent of all equity funding went to EnviroTech startups, with venture capitalists contributing nearly 60 per cent of this total pool, according to a report by Tracxn Technologies.

The report by Tracxn Technologies released on World Environment Day provides insights into trends and investments in the EnviroTech sector. The report claims that the investment landscape is changing geographically.

The United States’ share dropped from 62 per cent in 2018 to less than 40 per cent in 2023, while Europe and India are emerging as significant players.

European startups in the UK, Germany, and France now raise as much funding as their American counterparts. In India, investment in EnviroTech surged from $225 million in 2018 to $1.5 billion in 2023, focusing on drought resilience and water management.

Electric vehicles (EVs) and related technologies attracted over $60 billion in funding in the last five years. Emerging sectors like Solar Energy Tech and Carbon Capture & Offset received $18 billion, showing diversity within the EnviroTech landscape.

World Environment Day, themed around land restoration, desertification, and drought resilience, highlighted startups in these areas. US startups lead in land restoration investments, while India focuses on drought resilience through wastewater management.

Significant funding rounds in 2024 include Arbol raising $60 million for climate insurance, ICEYE securing $93 million for Geographic Information Systems, and GridBeyond receiving $55 million for Smart Grid Energy Tech. Leading investors include Techstars, with over 100 funding rounds in EnviroTech, and green funds like Breakthrough Energy and Lowercarbon Capital making substantial contributions to innovative projects.

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