Environmental technology funding in India has seen a significant increase over the past five years, according to a recent report by Tracxn, a market intelligence platform. Released in conjunction with World Environment Day, the report underscores key trends and emerging sectors poised to make substantial contributions to combating climate change.
The report highlights that investment in carbon capture technologies has surpassed USD 42 million, while solar energy technology has attracted over USD 161 million in the last five years.
"India's environmental tech funding surged from USD 225 million in 2018 to USD 1.5 billion in 2023, reflecting a compounded annual growth rate of 140 per cent," the report states.
While environmental tech funding has increased in both Europe and India, contributions from the US have declined from 60 per cent in 2018 to 40 per cent in 2023.
India is also witnessing a significant rise in startups focusing on solar energy technology, hydrogen production and storage, and electric vehicles, among other areas.
Additionally, Indian startups addressing drought resilience through wastewater management have received substantial funding. Over USD 35 million has been invested to date, significantly exceeding annual investments over the past five years.
The report also notes that funding for geo-green scorecards in India amounts to USD 6.55 billion, with USD 372 million received in 2024 to date, a leading news wire revealed.
The current count of unicorns and soonicorns in India stands at one and 26, respectively, according to the report.
"The landscape of environmental tech startups is evolving, with shifts in funding and innovation patterns across regions and sectors. As the world grapples with climate change, the role of startups in developing sustainable solutions is more critical than ever," the report concludes.
