Indian environment-technology start-ups funding has jumped from $225 million in 2018 to $1.5 billion in 2023, according to data platform Tracxn.
This jump marks a compounded annual growth rate (CAGR) of 140 per cent, according to Tracxn’s Environment Tech Report.
While, in 2018, the USA accounted for 60 per cent of environmental-tech funding, but this has dropped to under 40 per cent. Meanwhile, contributions from Europe and India have significantly increased over the past five years, the report noted.
In India, start-ups are emerging in solar energy technology, hydrogen production and storage and EVs. While, carbon capture and offset and solar energy technology have attracted over $43 million and $161 million funding respectively, making them the most funded sections in the last 5 years.
There has been a lot of funding in Indian start-ups tackling drought resilience through wastewater management, with over $35 million going in this year till date; which is significantly more than its annual investment each year over the past five years.
The total number of funding received in geo-green scorecards in India is $6.55 billion, with 2024 having received $372 million till date.
The total number of unicorns and soonicorns till date in India stand at 1 and 26 respectively.
Growing trend
While the USA, Europe and India are investing heavily in environment-tech, USA’s market share has gone down from 62 per cent in 2018 to less than 40 per cent in 2023, the report showed.
Environment-technology start-ups have raised nearly $240 million in funding in the first three months of 2024, according to a report by Tracxn, in May 2024.
According to the previous report, India’s environmental-technology funding saw substantial growth between 2018 and 2022, surging from $0.23 billion to $2.47 billion. Environment-tech funding in India peaked in 2022 at $2.47 billion. However, it experienced a decline to $1.68 billion in 2023. As of the first three months of 2024, the funding stands at $0.24 billion.