The role of climate tech in shaping India’s next decade

Explore how climate tech is driving India’s sustainable growth, from EV innovations to renewable energy breakthroughs, as startups tackle climate change challenges. Read More!

Climate change is here and it is real. About 50 million people could be pushed back into poverty owing to issues related to climate change, estimates the World Economic Forum. For India, this issue becomes even more stark given the reliance we have on nature for our economic prosperity. About one-third of India’s GDP is derived from sectors highly reliant on natural ecosystems, making the economy particularly vulnerable to climate risks. At WeWork Labs, we recognise the important role climate change mitigation has in how the next decade will be shaped. Which is why, solutions related to it in the field of climate tech, was the focal point of our latest episode of Upstart.

In the episode, Arvind Radhakrishnan, Head of WeWork Labs, sits down with Swapna Gupta, Partner at Avaana Capital and Akshay Shekar, Co-founder and CEO of KAZAM EV to discuss how the next frontier of climate-related solutions are being written and unwritten in the Indian context. Here’s how that discussion played out. As a partner at Avaana Capital, Swapna has made numerous investments in the space creating formidable players like eekifoods and 91 cycles. Similarly, Akshay Shekar at the helm of KAZAM EV, set out with the mission to create an agnostic EV charging software platform and build India's largest EV charging station network. At Labs, we felt they were the perfect voices to speak on the subject of climate change and all its implications. Here’s how the conversation panned out.

(We recommend checking out the full episode here. Don’t forget to subscribe to our YouTube channel for more episodes!)

Also read: Decoding startup ecosystem with Arvind

What is climate tech’s role in India’s growth?

There’s no doubt that India is currently on a rapid growth trajectory. And within it, climate tech is also seeing some large opportunities. There are about 800 startups in the country at the moment operating with a climate tech focus, with only more room to grow. “I think we’ve just scratched the surface (of climate tech) if you ask me,” Swapna Gupta tells Arvind. “(As a country), we have to continue to grow completely cognisant of the fact that climate change is here and real… the technologies that are built here will not only be relevant for us but also for the rest of the world.”

Over the last few years, climate tech has shown remarkable resilience, this is despite the fact that the Indian climate tech market is projected to need just over $1 trillion to meet its sustainability goals by 2030. Climate tech startups are also expected to play a significant role towards India achieving its ambitious net-zero emissions target by 2030.

(Watch Swapna and Akshay’s take on the subject here)

Prominent players in climate tech in India

There have been a number of players that have stuck out in the evolving climate tech sector. This includes players like Buyofuel, which operates India's first B2B (business-to-business) marketplace for biofuels, connecting suppliers and consumers to enhance local production and reduce dependence on fossil fuel imports.

Within the larger electric vehicle space—there have been a number of entrants in the last decade—with the largest being public-listed Ola Electric. Its rivals include Ather Energy, Riverr, among others. This segment of players corner most of the market, with Indian EV startups having raised approximately $2.7 billion, with over 70% of this funding directed towards electric two- and three-wheelers. “You now see incumbents (automotive companies) entering the market,” says Akshay in the episode. He added that with incumbents entering the market, competition has intensified and it's only a matter of time before a lever is switched on and adoption is rampant.

(Watch Swapna and Akshay’s take on the subject here)

Not all is smooth sailing in climate tech

Despite EV adoption being strong in two prominent categories of vehicles—two wheeler and three wheeler—the sector as a whole has a slew of hurdles that lie before it. While early stage funding in the sector is significant, late-stage funding in the sector is scarce which can be an obstacle to scale. Fewer than 3% of start-ups have managed to raise Series B funding or beyond. Besides funding, there is also an urgent need to solve issues related to the broader population at an economical rate, given that India is still a price conscious country. For startups that are actively looking to solve these issues, capital constraint should not be a cause for concern going forward, notes Akshay. “If you’re actually doing the right set of things, and if you are getting the right set of numbers, there is capital available,” he adds.

(Watch Swapna and Akshay’s take on the subject here)

The opportunities ahead

The opportunities ahead in climatetech are immense, fueled by the urgent need for sustainable solutions and the increasing alignment of innovation, policy, and investment. From renewable energy breakthroughs to carbon capture advancements, the sector is poised to redefine industries and create resilient economies. Emerging technologies in battery storage, green hydrogen, and sustainable agriculture open doors for transformative change, while public and private partnerships accelerate the pace of deployment. This includes players like Buyofuel, which operates India's first B2B (business-to-business) marketplace for biofuels, connecting suppliers and consumers to enhance local production and reduce dependence on fossil fuel imports.

The WeWork Labs take

Players like Buyofuel, a B2B biofuel marketplace, and EV leaders such as Ola Electric and Ather Energy, are already driving transformative change within climate tech. However, hurdles remain. Late-stage funding scarcity and price-sensitive markets challenge startups scaling solutions. Despite this, as Akshay Shekar highlights, “If you’re doing the right things, capital is available.”

With advancements in renewable energy, battery storage, and sustainable agriculture, India’s climate tech sector is poised to redefine industries and drive global sustainability efforts.