According to a recent report by Tracxn, a market intelligence platform, environmental technology funding in India has significantly increased over the last five years. Released to coincide with World Environment Day, the report highlights key trends and emerging sectors that are expected to play a major role in addressing climate change.
The report reveals that investment in carbon capture technologies has exceeded USD 42 million, while solar energy technology has attracted over USD 161 million in the same period. It states that environmental tech funding in India has grown from USD 225 million in 2018 to USD 1.5 billion in 2023, representing a compounded annual growth rate of 140 percent.
While environmental tech funding has also increased in Europe, contributions from the US have decreased from 60 percent in 2018 to 40 percent in 2023.
India is seeing a notable rise in startups focused on areas such as solar energy technology, hydrogen production and storage, and electric vehicles. Additionally, startups addressing drought resilience through wastewater management have received significant funding, totaling over USD 35 million to date, surpassing the annual investments of the past five years.
The report also mentions that funding for geo-green scorecards in India has reached USD 6.55 billion, with USD 372 million received in 2024 so far, according to a leading news wire.
The current number of unicorns and soonicorns in India is one and 26, respectively. The report concludes by noting the evolving landscape of environmental tech startups, with shifts in funding and innovation patterns across regions and sectors, emphasizing the critical role of startups in developing sustainable solutions as the world addresses climate change.
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