MEET THE NEW BACKERS OF GREEN TECH

Climate-tech startups are increasingly being funded by patient capital focused on regulation, long-term relevance

- Sakshi Sadashiv

Globally, the shipping sector has pledged to reach net-zero greenhouse-gas emissions by around 2050.

(REUTERS)

Neiox Eco Cycle isn’t the sort of startup you read about every day. It isn’t solving for fashion, food or grocery delivery. Rather, it is in the business of ship hulls—specifically, it is developing carbon-negative, nontoxic marine coatings for the undersides of marine vessels.

There is nothing sexy about the business, which has to solve for plankton, barnacles, mussels and other such delights. It’s also not the sort of business that attracts much interest from venture capitalists (VCs), who generally prefer to focus on consumer-facing or software-as-a-service (SaaS) businesses.

Despite this, Neiox Eco Cycle, founded by Akhil Raj Pottekkat, was able to obtain a tiny amount of funding in November 2024. The money didn’t come from a VC, but from Cochin Shipyard, which invested ₹30 lakh in the Kerala-based climate-tech startup. Last October, the shipbuilder followed that up with an additional ₹75 lakh investment under its maritime innovation programme.

Neiox isn’t the only startup to receive backing from an unlikely investor. In November, Mahanagar Gas Ltd (MGL) invested ₹120 crore in Bengaluru-based electric vehicle (EV) startup 3ev, which builds electric cargo vehicles and battery infrastructure, for a 30.97% stake. That same month, Varaha, a climate-tech startup, received an infusion of $30.5 million from Mirova, the sustainable investing arm of French financial group Natixis.

Other examples include Hindustan Petroleum Corp. Ltd (HPCL) backing early-stage climate technologies through its Udgam innovation platform, including a ₹35-crore investment in Maraal Aerospace, which builds long-range solar-powered drones, and Oil India Ltd backing carbon and materials innovation through investments in startups such as Caliche and Carbonation India in 2025.