VCs and Green Business in India

Rana Rosen on the rising cleantech venture funding in India by VCs.

Private equity (PE) investors, including early-stage venture capitalists, have poured more than $433 million (Rs1,775 crore) into environment-related businesses, primarily wind energy and clean fuel, in the country since 2001.
So far, investors have put down an average of $33 million into companies that, for example, turn sugar into clean fuel or make cars that run on an electric battery. Overall, investments favoured wind energy, which saw four companies receive funding worth $224 million, and clean fuels, where five companies got $141 million (see accompanying table).
Most investors are driven by the domestic need for power and water in India, and making that energy supply sustainable as the country develops. “People are looking at India as a market for things, not as a source for things,”
“India has already seen its wind industry develop rapidly, and looking at China, where solar production and installation are increasing rapidly, India certainly has great potential here,” says Dan Kammen, professor in the energy and resources group at University of California, Berkeley. Many investors see India’s potential in tapping solar energy as even greater than wind, given that its sunny days are around 93% of the year and can be more easily distributed. Companies doing work in biofuels also will continue get attention.

“Anyone who has a biofuel plan, they are sold out,” said Buch. “They sell every litre they manufacture.”

This continues to show the growing market for energy in India. Energy efficiency, Uranium, Wind, Solar, Bio Fuels, Coal, Gas and Oil. India needs all of these and some more .

Irrespective of the correct number it is prudent to remember that VC investing is always the tip of the iceberg in most markets. One good source for this fact is the annual Inc 500 listing. This year they have taken a big step forward and created the Inc 5000 listing. The funding strategy for these high growth companies? Only 7% of them relied on VC funding. If this is true for the US, then India should be even lesser considering the smaller VC market.

The end point: Using the above reasoning, the clean tech venture market in India may have received $8-$9 billion dollars($433m*20 times) from 2001 till now.


3 thoughts on “VCs and Green Business in India

  1. sir ,
    we introduce oueselves as an manu. of green building product , our product is manu. using rewenable source of energy in construction industry
    can help me for my following questionaires
    1. how to promote this product , i.e approach to the right user(or can we get names of those who have sign mou’s for LEED rating building)
    2. any institutes ,you suggest ,which can approve our product as green building product
    pl. suggest us ,
    with best regards
    sandeep vidwans
    for, enercon , a’bad

  2. Hi

    I would like to know more about VCs who are interested in initiall stage funding for a water and wastewater treatment technology.

    best regards


  3. Hi,
    I would like to know about VCs who would be interested to invest in a Print media start up in Assam. I have spent 16 years in print media with 360 exposure and would like to start a business daily. The present market completely lacks market drivers so I see great opportunity for growth in a short span of time.
    Best regards

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