Around 120 climate-tech startups have raised equity stake capital of USD 1.2 billion in five years.
As per to a recent report released on Thursday, stated that this infusion accounted for 16 percent by volume, number of deals and 9 percent by value, among the impact-oriented sectors.
A report by Impact Investors Council, Climate Collective and Arete Advisors stated, “Two hundred and seventy-two unique investors have been a part of over 200 funding rounds in the past five years for early-stage climate-tech start-ups.”
The report was titled as ‘Early-stage Climate-tech Start-ups in India: Investment Landscape Report 2021’, which said that there was sustainable growth in both the volume and value of equity share deals in the climate-tech sector between 2016 and 2019, before a decline in 2020, due to the Covid-19 pandemic.
The climate-tech startups are for profit making enterprises that work on innovative technology andbbased solutions that help cut down carbon footprint.
For such enterprises to progress, they need all-round support which includes profuse capital and beneficial policies.
The report said that while the sector was on an upward track till 2019, with both equity infusion and the volume of deals growing at a healthy CAGR of 70 percent and 48 percent, respectively, the climate-tech startups space faced a temporary deceleration in 2020.
The report also added that viable mobility including electric vehicle manufacturing, clean logistics, and novel components saw the highest investment with 84 deals that were accounting to USD 705 million.
As per to the report, clean energy generation from new feedstocks, energy access, energy storage and energy optimisation products saw an investment activity with 44 deals amounting to USD 301 million.
The clean-tech sector accounted for only 9 percent of the investment to total impact investing flows, which includes the financial inclusion, healthcare, agriculture, education, etc.
The report further said that most of the deals were at ‘early-stage’ and of smaller ticket sizes, 68 percent of the deals received seed stage funding, and 83 percent of the transactions were USD 5 million or lower in size.