Analysis · Climate, Energy & Sustainability
India climate tech funding hits $12.8 billion total
By Startup Enthusiast ·
- Date
- Company
- Tracxn
- What it does
- Climate tech market analysis
- Kind
- Analysis
What they do
Tracxn reports India's climate tech sector raised $12.8 billion across 2,770 rounds
What happened
The number of funded companies reached 1,583 with 104 recorded exits to date
Why it matters
Renewable energy leads investment with $1.5 billion while government schemes support growth
The details
- Tracxn analyzed the Indian climate tech sector as of June 3, 2026.
- Cumulative equity funding reached approximately $12.8 billion in total capital invested.
- Investors backed 1,583 distinct companies operating within the climate technology space.
- The sector recorded 104 successful exits for investors and founders.
- Annual funding grew significantly from $315 million in 2020 to $2.6 billion in 2025.
- Electric mobility remains a leading sub-sector for investment activity.
- Renewable energy infrastructure attracted substantial capital during this period.
- Energy transition projects also saw significant financial backing from investors.
The bigger picture
- Government policies like PM E-DRIVE extend support until 2028.
- The Carbon Credit Trading Scheme launches in October 2026 for industrial units.
- Rare earth magnet manufacturing receives Rs 7,280 crore under REPM Scheme.
- These initiatives create a favorable environment for climate tech startups.
About the business
- Companies operate primarily in electric mobility and renewable energy sectors.
- Solid waste management tech raised $477 million across 255 rounds.
- Energy efficiency technologies captured $352 million in total funding.
- Air pollution management solutions attracted $237 million in investments.
- Water and wastewater management tech secured $208 million in capital.
- Erisha E Mobility completed a $1 billion Series D round in 2025.
- Inox Clean Energy raised $344 million in Series D financing.
- Gruner Renewable secured $60 million in its Series C funding round.
- Lohum raised $23 million in Series B investment.
- 75F obtained $45 million in Series B funding.
- Applied Energy completed a $40 million Series D round.
- Chakr Innovations raised $23 million in Series C financing.
What happens next
- The Carbon Credit Trading Scheme becomes live in October 2026.
- REPM Scheme for rare earth magnets is effective from December 2025.
- PM E-DRIVE scheme continues until 2028 for EV adoption.
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