Bengaluru-based Transition VC, an energy transition-focused venture capital firm, has launched a $48.9 million (Rs 400 crore) debut fund, with a greenshoe option of $24.4 million, it said it a statement on Wednesday.
The firm aims to make seed investments in startups that are in the segments of e-mobility, green hydrogen, energy storage, net zero and climate tech.
The firm is looking to invest in up to 40 early-stage startups over the next three years. The fund’s ticket size will range from $500,000 to $1 million.
Transition VC, which recently received approval from market regulator SEBI, is targeting to reach the first close of the fund by the end of this calendar year.
The fund was founded last year by Raiyaan Shingati, Mohammed Shoeb Ali, Mustafa Wajid, Naresh V Narasimhan, Tejas Goenka, Saif Qureishi, and Rajesh Doshi. The team comes with domain expertise in the energy transition sector and has extensive experience in operating, building, and selling businesses, coupled with a stellar investment track record, the statement said.
“Climate change & energy transition is a business opportunity, as they demand reinvention of every segment of the industry. We are at the beginning of a new era! Major shifts like this don’t come around that often, but we are starting to see one now & it’s going to shape how people consume energy for decades to come,” Transition VC co-founder and managing director Raiyaan Shingati said.
Prior to launching Transition VC, its team invested in multiple startups in the e-mobility
sector including Charge+Zone and Exponent Energy.
“We see an opportunity of more than 12 unicorns coming from India in this decade just in the energy transition & climate tech space,” Transition VC co-founder and managing partner Shoeb Ali said.
In addition to investments in Indian startups, the fund will also allocate 25% of the fund value for global startups, it said in a statement.
Concerns around rising climate change and the growing need for sustainable solutions have led to the sector garnering investor interest and funding. According to the data from Tracxn, as of September 2022, $1.4 billion has already been invested in such companies, ranging from EVs to battery manufacturing and swapping to firms helping corporates and individuals keep an account of their carbon footprint.
Some of the active investors in the space include Blue Ashva Speciale Invest, Climate Seeds Fund, Avaana Capital, Omnivore, and Climate Angels, among others.