From Electric Scooters to Flying Taxis: Climate Tech Funding Trends in 2024
2024 saw Indian climate tech startup funding[i] rise by 20%, but the real story was the shift in where the money went. New sectors like nuclear fusion, flying taxis, and modular housing got funded. Top-funded companies included not just regulars such as Fourth Partner Energy and Ather but also newcomers—SolarSquare, a solar installation and financing firm, and Battery Smart, a battery-swapping platform. The year also delivered a major milestone: Ola Electric’s IPO, making it the first Indian EV company to go public.
The number of deals increased by 20% to over 127, and the growth wasn’t limited to seed deals. Mid-sized rounds gained momentum, as the number of companies raising $5–$10 million doubled from 5 to 10, while those securing $10–$15 million similarly increased from 8 to 15. It’s heartening to see many climate startups such as Bambrew, Akshayakalpa, and Kazam graduate to bigger funding rounds.
Sector Snapshot
Electric Mobility: Finally, No New Scooter Startups!
Once the crown jewel of climate tech, this sector cooled off in 2024, with investments falling to $490 million, a 53% drop from its 2022 peak. While established players like Ather Energy and Euler Motors continued to attract capital, the sector’s maturation hints at investors turning cautious about new entrants. The lack of fresh funding has created challenges for some companies, such as Log9 Materials, which faced layoffs. On a brighter note, funding expanded beyond electric two-wheelers. Electric bus booking platforms like Fresh Bus and Zingbus, as well as EV component manufacturers like Vecmocon and Naxatra Labs, raised capital.
Solar: Fourth Partner Steals the Show
Solar funding was dominated by Fourth Partner Energy’s whopping $275 million raise. A few other players like Soleos Solar and Cosmic PV Power managed to get seed rounds, but mostly, this was a one-company show.
Sustainable Brands: Consumer Demand Drives Growth
Brands that promise sustainable consumption are gaining traction, with several brands landing funding this year. Akshayakalpa and Two Brothers Organic Farms raised capital to expand their organic, chemical-free food offerings, while Uppercase and Fibmold secured funding for sustainable luggage and biodegradable packaging, respectively. Additionally, Beco, which makes eco-friendly household products, secured funding.
Climate Fintech: Riding the EV and Solar Wave
With the rise in solar and EV sales, climate fintech is finally getting some traction. SolarSquare (solar financing), Namdev Finvest & Tapfin (Solar, EV financing), and Two Point O Capital (clean tech financing), SustVest (fractional solar assets) all raised rounds. Ironically, it seems easier to raise capital for financing solar systems than for installing them. A solar EPC founder recently mentioned to me that he considered adding financing to his pitch deck just to get investor meetings.
Other Notable Deals: A Mixed Bag
Beyond the headline sectors, investments poured into diverse areas:
- ESG reporting (Accacia, Sustainam, LogicLadder, Fitsol)
- Carbon credit developers (Varaha)
- Water startups (Boson Water, Indra Water, JSP Enviro, Drink Prime)
- Biofuels (Biofuel Circle)
- Precision agriculture (Fylo, Niqo Robotics)
- Solar-powered cooling (Ecozen)
- Modular housing (Modulus housing) nuclear fusion (Anubal Fusion) and flying taxis (e plane, Sarla aviation)
Top Funded Companies
A select few companies have consistently raised capital year after year, maintaining momentum and fuelling the climate tech narrative. The key question now is whether they can deliver the exits needed to attract fresh capital. Ola Electric’s IPO in 2023 was significant—while not a massive 100x exit, it set an important precedent. With Ather Energy planning its IPO, another milestone could soon be on the horizon.
Top Funded Climate Tech Startups ($ mn)
| Founded in | 2021 | 2022 | 2023 | 2024 | Total | |
| Fourth Partner Energy | 2010 | 158 | 42 | 275 | 476 | |
| Ola Electric | 2017 | 253 | 200 | listed | 453 | |
| Ather Energy | 2013 | 56 | 178 | 108 | 71 | 413 |
| Battery Smart | 2019 | 7 | 28 | 33 | 65 | 133 |
| Blu Smart | 2019 | 25 | 15 | 61 | 24 | 125 |
| Euler Motors | 2018 | 17 | 65 | 14 | 24 | 120 |
| Atomberg Technologies | 2012 | 16 | 104 | 119 | ||
| Charge Zone | 2018 | 10 | 46 | 19 | 75 | |
| River | 2020 | 11 | 15 | 40 | 66 | |
| Solar Square | 2015 | 4.00 | 12.50 | 44.20 | 61 | |
| Lohum Cleantech | 2018 | 7 | 23 | 15 | 61 | |
| Log 9 Materials | 2015 | 12 | 21 | 51 | 84 | |
| Exponent Energy | 2020 | 10 | 13 | 26 | 49 | |
| Zypp Electric | 2017 | 7 | 7 | 20 | 15 | 49 |
| Ecozen | 2010 | 17 | 30 | 47 |
Key Investors and Deals
Post the funding boom of 2021 and 2022, venture capital deployment has slowed down as investors take longer to assess opportunities. For example, Blume Ventures and Avaana Capital, despite raising new funds, each did just one climate deal in 2024.
However, many VCs are incorporating climate into their broader investment theses. Lok Capital made a climate investment, and mainstream players like Accel Partners backed sustainable consumer brands. International investors such as The British International Investment, Emerald Technology Ventures, Maniv Mobility, and Bidra Innovation Ventures made maiden investments in India.
Growth-stage capital also saw activity, with players like Piramal Alternatives, A91 Partners, Leapfrog Investments, Neev Fund, and IFC deploying funds.
New Funds
- Avaana Capital raised a $135 million sustainability-focused fund.
- Water treatment company Va Tech WaBagh launched Blue Seed to invest in water startups.
- BlueGreen Ventures and Prana Ventures are closing new climate-focused funds in 2025
Conclusion
Going forward, VC funding is expected to continue growing in sectors like climate fintech and sustainable brands, as these areas share a similar risk-return profile with consumer tech and fintech, which already attract significant venture capital. Additionally, investors are increasingly interested in deep tech and IP-driven technologies that have the potential to reduce CO2 emissions in billions of tons.
On the other hand, critical sectors like the circular economy, waste management, green energy, and water infrastructure—essential for climate adaptation and resembling large-scale infrastructure projects—do not align well with traditional VC models. These sectors require patient capital, which is both scarce and increasingly threatened as many countries and large corporations scale back their climate ambitions in response to financial challenges and a shift in leadership in the United States. Encouragingly, domestic patient capital is beginning to emerge; for instance, the Rainmatter Foundation was one of the most active seed investors in climate tech in 2024.
As the climate tech landscape evolves, balancing traditional venture capital with alternative funding models will be crucial to addressing both innovation and infrastructure needs for a sustainable future.
[i] Funding data has been sourced from Tracxn, newspaper reports, and Market Pulse (newsletter by Indian Impact Investor council)
