India’s climatetech sector has now raised roughly $12.8 billion in cumulative fairness funding throughout 2,770 rounds, with 1,583 corporations having acquired backing and 104 exits recorded as of June 3, 2026.

In accordance with a report by Tracxn, annual funding within the sector has grown from round $315 million in 2020 to $2.6 billion in 2025. Sectors equivalent to electrical mobility, renewable vitality, and vitality transition infrastructure have led this development.

Erisha E Mobility’s $1 billion Collection D spherical in 2025 is probably essentially the most seen signal of this modification.

Amongst all local weather tech segments, Renewable Vitality Tech has attracted essentially the most funding at $1.5 billion throughout 195 rounds. Inox Clear Vitality’s $344 million Collection D and $70 million Collection C have been among the many most notable transactions on this section.

Stable Waste Administration Tech is the second largest section with $477 million raised throughout 255 rounds. Gruner Renewable’s $60 million Collection C and Lohum’s $23 million Collection B have been among the many key offers right here.

Past these two segments, Vitality Effectivity Tech ($352 million), Air Air pollution Administration Tech ($237 million), and Water and Wastewater Administration Tech ($208 million) have collectively raised near $800 million.

Notable offers embrace 75F’s $45 million Collection B and Utilized Vitality’s $40 million Collection D within the vitality effectivity area, and Chakr Improvements’ $23 million Collection C in air air pollution administration.

A big half of what’s driving investor confidence is the Indian authorities’s increasing coverage framework for local weather tech. A number of schemes are actually lively or coming into impact within the close to time period. The PM E-DRIVE programme, which is prolonged till 2028, is a Rs 10,900 crore initiative supporting electrical car adoption, charging infrastructure, and fleet electrification. It’s making a extra predictable demand setting for corporations working throughout the EV and battery ecosystem.

The Carbon Credit score Buying and selling Scheme, which is ready to go dwell in October 2026, will set up India’s first compliance carbon market, masking round 490 industrial models throughout 9 sectors. That is anticipated to create new alternatives for startups in carbon accounting, emissions monitoring, and industrial decarbonisation.

The REPM Scheme, which grew to become efficient from December 2025, allocates Rs 7,280 crore for growing home uncommon earth everlasting magnet manufacturing.

“These insurance policies are enhancing industrial visibility for startups working throughout mobility, batteries, renewable vitality, recycling, carbon administration, and industrial decarbonisation,” as famous in a sector evaluation by Tracxn.