Deep-Tech Indian Ventures Are Implementing Climate Change Solutions Across Sectors

Climate change and its potentially calamitous consequences for Earth have compelled a raft of Indian start-ups to seek technology-based solutions to lower toxic carbon emissions. That these companies work in sectors ranging from energy, supply chains and mobility to advanced materials, biotech and food and agriculture—massive, high-growth segments of the economy—have made them a compelling story for investors. India has committed to net zero carbon emissions by 2070. The gap between ambition and outcome is fuelling the new wave of climate tech start-ups. Investors aren’t just backing green ideas, they’re chasing deep-tech innovations across sectors to solve complex climate problems. An estimated 800 deep-tech Indian ventures have raised around $3.6 billion in the past 10 years (2014-2024) and are transcending traditional climate tech boundaries, integrating advanced science and engineering to drive climate change solutions across sectors. Take, for instance, Varaha Earth, which has made a measurable impact since its founding barely three years ago. It has helped eliminate more than one million tonnes of carbon dioxide emissions from 1.1 million acres owned by small farmers. Scalable Solutions Varaha works with 100,000+ farmers in South Asia and Africa and seeks to decarbonise farming through regenerative agriculture, afforestation and reforestation, biochar production and rock weathering or erosion of rocks and minerals on the earth’s surface. By integrating satellite monitoring, artificial intelligence and field data, the company ensures transparent and verifiable carbon removal. For instance, Varaha trains farmers to convert crop waste into biochar using low-emission kilns, preventing carbon release. It supports on-ground implementation and ensures optimal biochar use. Varaha verifies carbon removal using satellite data and digital tools and helps farmers earn carbon credits. Madhur Jain, co-founder and Chief Executive Officer, says the company has demonstrated how deep-tech innovation, supportive policies and market-driven models can converge to create scalable climate solutions. Jain is not in the business of climate tech for altruism. He says profitability and sustainability must go hand-in-hand and climate action can be both economically viable and environmentally transformative. With $8.7 million in Series A funding, Varaha is leading the charge in making carbon removal from agriculture a reality. Its ambition is to sequester one billion tonnes of carbon dioxide emissions from smallholder lands. The Gurugram, Haryana-based company is named after an incarnation of Lord Vishnu who, according to mythological accounts, saved the Earth by lifting it out of the ocean and placing it back in its place in the universe. Varaha, which claims to be the only climate-change tech startup focused on developing economies, and other deep-tech start-ups are trying to do something similar. They have stepped up to the plate to help countries in the effort to meet their target of net-zero carbon emissions — a goal that will be achieved when greenhouse gas emissions and their removal are in balance. Hardcore Science From carbon capture to energy storage and agritech, these ventures are less about sustainability slogans and more about hardcore science. Climate tech, once a niche, is now a revolution powered by tech that just happens to fight climate change. Most of the money raised by climate-change tech companies, however, has been limited to pre-seed, seed or at best Series A stages—rarely extending to late-stage rounds where the real impact begins to unfold. From a sectoral perspective, energy and transportation dominate climate-tech investments. Investors are particularly focused on energy efficiency, long-duration energy storage, waste heat recovery and alternative fuels, according to The India Climate Finance Report released in 2024. “The recognition of climate change as a global as well as a domestic problem which has measurable ramifications has unlocked more investing activity in the space,” says Chintan Antani, Vice President, Seed and Acceleration, IIMA VenturesPolicy Boost Climate tech has become a more viable investment in India compared to five years ago. Most of the credit goes to the policy shifts. Antani says the most widely discussed policy shifts include the Panchamrit Pledges of India’s climate action, put forward at the Conference of Parties to the UN Convention on Climate Change in 2022, Productivity-Linked Incentive schemes for batteries, solar power, and green hydrogen, and the FAME II (Faster Adoption and Manufacturing of Electrical Vehicles) scheme. The carbon trading framework has also lent momentum to the sector. But climate tech isn’t operating in isolation. It’s intersecting with multiple traditional and emerging industries. According to Arjun Malhotra, General Partner, Good Capital.the current boom is being driven less by ESG mandates and more by measurable returns. “Take swappable battery tech,” he says. “It’s cutting operational costs and charging times for electric two- and three-wheelers, bringing EVs on par with ICE vehicles in performance and convenience.” ICE is short for internal combustion engine. What’s Lacking? Climate-tech investment has slowed recently, especially late-stage funding. Industry experts say substantial capital was deployed before 2023 and so investors are taking a breather. Several additional factors have also contributed to the slowdown. Scalability and growth in climate tech emerge through disruption, says Shyam Menon, co-founder of Bharat Innovation Fund. He says deep tech requires disruptive IP or intellectual property, something not all climate-tech start-ups possess. “A solar panel assembler isn’t deep tech but a battery start-up with fast-charging IP is. True deep tech in climate includes innovations like fuel cells, energy storage or advanced materials,” says Menon. While policy shifts are under way, regulatory challenges remain a key hurdle. Without mandates, adoption lags because businesses rarely absorb extra costs voluntarily. “The market only becomes viable when regulations are strictly enforced or when sustainable alternatives undercut conventional ones on cost—like solar, which is now cheaper than fossil fuels,” he adds. There are different types of funds tailored to different businesses but the type of capital varies based on the organisation&#039;s structure and objectives. The race to net zero is far from over but with deep tech, policy tailwinds and investment momentum, climate tech may finally be shifting from promise to reality. @PalakAgarwal64

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Deep-Tech Indian Ventures Are Implementing Climate Change Solutions Across Sectors

An estimated 800 deep-tech Indian ventures have raised around $3.6 billion in the past 10 years, integrating advanced science and engineering to implement climate change solutions across sectors.