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India's Environmental Tech Sector Soars with USD 7.3 Bn in Funding, Tracxn Reports Startups in the fields of EVs, hydrogen production and storage, and solar energy technology are growing in India. The two areas that have received the most financing over the past five years are carbon capture (USD 42 million) and offset and solar energy technology (USD 161 million).

By Minakshi Sangwan

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In the previous five years, financing for environmental technology has increased in India, according to a report released on Friday.

In the fight against climate change, the Tracxn report identifies important trends and new fields that are expected to have a big impact.

The Indian environment tech industry has raised a total of USD 7.3 billion in funding to date, as per Tracxn's Environment Tech India report.

As per the report, between 2018 and 2022, India's funding for environmental technologies increased significantly, rising from USD 0.23 billion to USD 2.47 billion. India's spending on environmental technology reached a height of USD 2.47 billion in 2022. However, in 2023, it fell to USD 1.68 billion, a 32% drop from 2022. The funding amount as of the first three months of 2024 is USD 0.24 billion.

There have been 388 new startups funded between 2018 and 2024, bringing the total to 865. Some of the new members of the funded club are BluSmart, Ecofy, and Battery Smart.

There have been 14 initial public offerings in the environmental tech sector. USD 0.2 billion was the highest average market cap for an IPO in 2023 out of 2020 to 2024.

Additionally, the study disclosed that there have been 25 acquisitions made so far.

In 2023, just five companies reported raising more than USD 100 million. These are Ather Energy, Mahindra Electric Automobile, TI Clean Mobility, Ola Electric, and Avaada. The only unicorn to date to come out of India's environment tech sector is Ola Electric.

Startups in the fields of EVs, hydrogen production and storage, and solar energy technology are growing in India. The two areas that have received the most financing over the past five years are carbon capture (USD 42 million) and offset and solar energy technology (USD 161 million).

When it comes to total city funding, Bengaluru (USD 2.7 billion) is at the top of the list, followed by Delhi (USD 1.2 billion) and Mumbai (USD 942 million).

In India, USD 6.55 billion in financing has been secured for geo-green scorecards; to date, 2024 has gotten USD 372 million of that total.

Minakshi Sangwan

Junior Writer

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