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Funding in climate-tech startups cools but VCs remain optimistic

Business Standard

|

June 05, 2025

As the world observes Environment Day on June 5, India's climate-tech startup sector tells a different story — funding has plunged from $2.4 billion in 2022 to just $1.5 billion in 2024.

- UDISHA SRIVASTAV

Funding in climate-tech startups cools but VCs remain optimistic

The overall startup funding amount, which stood at $5.01 billion (127 companies) in the first five months of 2024, reduced to $2.79 billion (60 companies) in the corresponding period this year.

While the slowdown can be partly attributed to the funding winter, venture capitalists (VCs) point out several challenges in the climate-tech ecosystem, ranging from a long gestation period to high capital requirements and an unproven return on investment (RoI).

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