My guest today is Kunal Khattar, founding managing partner at AdvantEdge Founders, an early-stage VC firm in New Delhi that’s well known for backing founders in the EV and mobility sectors in India. Kunal is well known for backing both consumer facing shared mobility ventures like Rapido and technology-led product innovation startups like Exponent Energy, which is a leader in fast-charging tech in India.
It’s now 10 years since AdvantEdge was founded, Kunal says, and the firm is very close to announcing the first close of its third fund, which will likely be in the ballpark of $75 million, to back the next generation of EV entrepreneurs in India.
In this conversation, Kunal talks about why he expects the EV space to hit the J-curve growth stage over the next three to five years and how replacing the overall ICE economy in India is a trillion-dollar opportunity.
Kunal also talks about how because technology-led industry shifts can take decades, some promising technologies, like green hydrogen, for example, will take time to become mainstream.
Daily brief on deep tech and climate tech news from India and around the world
Illustrative image. India needs high-altitude drones to support its troops across the Himalayas, or for rescue operations and several other civilian applications as well.
JuliaHub unveils Dyad to accelerate hardware development with AI-powered modeling
JuliaHub has launched Dyad, a new system that integrates Scientific Machine Learning, Generative AI, and traditional physics modeling to revolutionize hardware system design, according to a post from the eponymous company. Dyad offers both textual and graphical interfaces, agentic AI workflows, and seamless simulation tools, supporting the entire product lifecycle for industries like aerospace and energy.
Under a source-available license, Dyad aims to bring modern software agility and collaboration to engineering, making advanced modeling accessible, safe, and efficient for critical applications.
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APac ex-Japan IoT spending to reach $355 billion by 2029, driven by manufacturing and smart technologies
Internet of Things (IoT) spending in the Asia Pacific region (ex-Japan) will grow from $241 billion in 2025 to $355 billion by 2029, with a 12.6 percent CAGR, technology market researcher IDC said in a recent post.
Manufacturing, government, retail, and utilities will drive over half of 2025’s spending, while healthcare and transportation will see the fastest growth. Hardware, especially sensors and modules, will dominate spending, with China, India, and Indonesia leading growth. Key trends include smart factories, supply chain resilience, and real-time analytics adoption.
John Cockerill Hydrogen raises €116 million to boost global green hydrogen expansion
John Cockerill Hydrogen has secured a €116 million capital increase to advance its strategic development and international growth, the hydrogen electrolyser and industrial equipment maker said in a press release.
Supported by Belgian investors SFPIM and Wallonie Entreprendre, and new partner Fluxys, the funding strengthens the company’s Belgian roots and global reach.
The capital will support large-scale electrolyser production in Europe and India, including India’s largest green ammonia project. The group’s Indian unit is listed in Mumbai.
This investment advances John Cockerill’s leadership in pressurized alkaline electrolyser technology, reinforcing its commitment to sustainable, cost-effective green hydrogen solutions worldwide, according to the press release.
Toyota Kirloskar Motor and Ohmium partner to pilot green hydrogen microgrids for India’s clean energy future
Meanwhile, Toyota Kirloskar Motor and Ohmium International have signed an MoU to co-develop green hydrogen-based microgrid solutions in India. The collaboration combines Toyota’s fuel cell expertise with Ohmium’s modular PEM electrolyzer technology to design scalable, efficient, and cost-effective hydrogen power systems for diverse applications, including data centers and remote areas.
The partnership aims to prototype and test integrated electrolyzer-fuel cell microgrids, supporting India’s National Green Hydrogen Mission and advancing the country’s carbon neutrality and energy independence goals.
Cummins India launches Battery Energy Storage Systems to accelerate clean energy transition
Cummins India Limited has launched its Battery Energy Storage Systems, expanding its sustainable solutions portfolio to support India’s clean energy goals, the industrial company said in a press release.
The modular, scalable units — available in 10ft and 20ft containers with capacities from 200kWh to 2MWh — use advanced lithium ferrophosphate batteries and integrated liquid cooling for safety and long life, according to the release.
Designed for industries such as manufacturing, data centers, and mining, these systems enable seamless integration of renewables, grid stability, and optimized energy costs, the company said.
Ericsson expands Bengaluru R&D to boost 5G chip design and India’s semiconductor ecosystem
Ericsson is expanding its Bengaluru R&D operations with a dedicated Application-Specific Integrated Circuit (ASIC) development unit, adding over 150 engineering roles. This move strengthens Ericsson’s global semiconductor design capabilities and supports India’s growing tech ecosystem.
The new unit will focus on developing custom Ericsson Silicon System on a Chip (SoC) solutions, essential for high-performance, energy-efficient 5G network equipment. The expansion aligns with Ericsson’s $5 billion annual R&D investment and India’s ambitions to become a semiconductor innovation hub.
Antler Bio raises $4.3 million to expand gene expression tech for smarter, more resilient dairy farming
Antler Bio has secured $4.3 million in funding, led by The First Thirty Ventures, to scale its EpiHerd gene expression platform across Europe, Tech Funding News reports. EpiHerd analyzes how cows’ genes respond to environmental and nutritional stressors, delivering data-driven insights that boost milk yields, quality, and herd health. Already used on over 100 farms, the system has achieved up to 22 percent higher milk yields and a 7:1 ROI. The funding will accelerate expansion and further technology development.
Raphe mPhibr raises $100M to scale indigenous drone manufacturing and global defense ambitions
Raphe mPhibr has secured $100 million in Series B funding led by General Catalyst, marking the largest private capital raise by an Indian aerospace manufacturer, according to a press release by the Noida based startup.
Founded in 2016, Raphe designs and manufactures end-to-end unmanned aerial systems (UAS), including drone swarms and high-altitude UAVs, entirely in India.
Serving more than 10 government agencies, the company has achieved 4x revenue growth for four years, remains profitable, and plans to expand globally, emphasizing sovereign technology and local manufacturing.
In Conversation
In-depth conversations with entrepreneurs, investors, industry leaders, and other stakeholders building India’s deep tech and climate tech ecosystems.
Takeaways from conversations with entrepreneurs, investors, industry leaders, and other stakeholders building India’s deep tech and climate tech ecosystems.
Daily brief on deep tech and climate tech from India and around the world.
Global clean tech investments to hit 2X versus fossil fuels in 2025
Investment in clean technologies – renewables, nuclear, grids, storage, low-emissions fuels, efficiency and electrification – is on course to hit a record $2.2 trillion this year, attracting twice as much capital as fossil fuels, according to the 2025 edition of the International Energy Agency’s annual World Energy Investment report, which was released earlier this month.
This reflects not only efforts to reduce emissions but also the growing influence of industrial policy, energy security concerns and the cost competitiveness of electricity-based solutions, the IEA said in a press release on June 5. Investment in oil, natural gas and coal is set to reach $1.1 trillion.
Overall, global energy investment is set to increase in 2025 to a record $3.3 trillion despite headwinds from elevated geopolitical tensions and economic uncertainty, according to the release.
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Deadline nears for comments on India’s draft climate finance taxonomy
There are just 10 days left to submit feedback to the Ministry of Finance on India’s draft Climate Finance Taxonomy, released last month. The taxonomy aims to define clear criteria for climate-aligned investments, boost green finance flows, and help India meet its net zero targets.
Stakeholders — including financial institutions, industry, and civil society — are encouraged to provide input to ensure the taxonomy supports credible, transparent, and effective climate action across the economy.
India’s solar boom curbs coal use as renewables hit record highs
Meanwhile, India’s solar power generation surged by 32.4 percent in the first four months of 2025, reaching a record 57.8TWh and boosting solar’s share of the electricity mix to 10 percent, Reuters reports.
This growth, alongside higher hydro output, helped keep coal-fired generation flat and cut natural gas-fired output by 27 percent. In May, coal power output fell 9.5 percent year-on-year, the steepest drop in five years, as renewables hit record highs and overall power demand declined. While coal remains India’s dominant energy source, clean power’s share continues to grow.
Trump to scrap Biden-era rule on pension funds considering ESG
In the US, the Department of Labor, under President Donald Trump’s administration, has announced plans to overturn a Biden-era rule that allowed pension funds to consider environmental, social, and governance (ESG) factors in investment decisions and shareholder voting, Green Central Banking reported, citing ESG Dive.
SkyNRG raises €300 million to accelerate sustainable aviation fuel production
In Europe, Dutch company SkyNRG has secured €300 million — led by asset managers APG and Macquarie — to build three large-scale sustainable aviation fuel (SAF) plants in Europe and North America, Tech Funding News reports. The flagship facility in the Netherlands will use green hydrogen and captured CO₂ to cut emissions by over 80 percent compared with regular jet fuel.
SkyNRG’s integrated approach, strict sustainability standards, and partnerships with airlines and corporations aim to make SAF mainstream and help aviation reach net-zero emissions by 2050.
ScaleFund III raises €12M to back tech scale-ups in Benelux and France
Also in Europe, Belgian venture capital firm ScaleFund has launched its third fund, ScaleFund III, with an initial close of €12 million, targeting €30 million to support tech-driven companies in digital transformation, cleantech, and deeptech across Benelux and France.
Led by Managing Partner Claire Munck, the fund focuses on hands-on support for companies beyond the startup phase, emphasizing diversity — 40 percent of prior investments were in women-led ventures — and aims to fill the funding gap for early-stage scale-ups with strong growth potential.
Synthetic graphite production can be decarbonized with renewables and green hydrogen, study finds
A new study finds that synthetic graphite production, crucial for electric vehicle batteries, can cut its high carbon emissions by adopting renewable energy and green hydrogen, Climate Insider reports.
By switching 20–80 percent of energy sources, factories could reduce emissions by up to 70 percent. While decarbonization may increase production costs, surging demand and regulatory pressure make these measures increasingly necessary, according to the report.
Shipping industry faces hurdles as it navigates new net zero rules
The shipping industry, responsible for about 3 percent of global emissions, faces a pivotal period as it seeks scalable zero-emission solutions and adapts to stricter climate policies, Reuters reported last week.
The sector must cut the greenhouse gas intensity of its fuel by 30 percent by 2035 and 65 percent by 2040 under new global regulations, with the International Maritime Organization introducing emissions thresholds and a pricing mechanism starting in 2028. While innovations like wind-assisted propulsion and biofuels are emerging, concerns remain over the sustainability of some fuels and market uncertainty, according to Reuters.
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Microsoft’s deal for low-carbon cement from MIT-spinout Sublime
Microsoft recently agreed to buy up to 622,500 metric tonnes of low-carbon cement from Sublime Systems, a US startup, over the next six to nine years, aiming to reduce emissions from its data center and infrastructure construction. The deal uses new environmental certificates to claim emissions reductions, even when the cement isn’t used directly by Microsoft.
Sublime’s electrochemical process avoids the carbon emissions of traditional cement production. The agreement will help scale Sublime’s technology and accelerate the adoption of cleaner construction materials in an industry responsible for about 8 percent of global CO₂ emissions.
Sublime was founded at MIT by Dr. Leah Ellis and Prof. Yet-Ming Chiang, both respected experts in materials science, electrochemical systems, and sustainability research. The company has raised over $200M in funding from leading climate tech investors, global cement incumbents, and cooperative agreements with the U.S. Department of Energy.
Gridcare uses AI to unlock hidden grid capacity for data centers
Gridcare, a US startup founded by entrepreneur Amit Narayan, uses generative AI to map and analyze the US electrical grid, according to a TechCrunch report. The startup, which has raised $13.5 million in seed funding recently, could potentially identify more than 100 gigawatts of untapped capacity for data centers, Narayan tells TechCrunch.
By matching data center developers with utilities and factoring in variables such as fiber connectivity, weather, and regulations, Gridcare aims to help hyperscalers bypass long waits for grid connection. It charges developers based on the megawatts it unlocks, offering a cost-effective alternative to building private power plants.
So far, North American startups have secured over $22.37 billion in funding for carbon capture, utilization, and storage (CCUS) technologies, altenergymag.com reports. Some $130 million of that was raised in 2025 to date.
Investors grow cautious on direct air capture despite climate tech boom
Once a darling of climate tech, direct air capture (DAC) startups in the US have seen a 60 percent drop in venture investment this year amid political uncertainty and wavering corporate commitments, Bloomberg reported early last month.
With government incentives at risk and high costs per tonne, the DAC sector faces a challenging path to scale, even as overall climate tech investment rises. This shift raises concerns about the sector’s ability to deliver on long-term carbon removal goals, Bloomberg Reporter Coco Liu writes in that insightful piece.
Stride Green raises $3.5 million to boost tech-enabled clean energy asset financing
Stride Green, in New Delhi, has secured $3.5 million in seed funding to expand its innovative financing and leasing solutions for renewable energy, electric mobility, and battery storage. The company’s green finance portfolio now exceeds $120 million, supporting more than 3,000 cleantech assets and reflecting India’s surging climate tech investment.
Stride Green was started last year by the well-known venture debt focused VC, Ishpreet Singh Gandhi, founder and managing partner at Stride Ventures, along with Vivek Jain, co-founder and chief business officer.
On World Environment Day, my guest on India Tech Report: In Conversation was Vishal Kataria, a member of the investment team at Ankur Capital, and co-author of the Mumbai-based early-stage VC firm’s recent climate tech report titled Transforming India’s Core Sectors.
Here are my top 10 takeaways from that conversation.
1. Climate tech investment remains robust in India
Despite a broader slowdown in venture capital, climate tech investments in India have consistently exceeded $1 billion annually over the past three or four years. This resilience highlights the sector’s growing maturity and the increasing recognition that climate solutions are not just about emissions reduction but also about long-term economic competitiveness.
2. Disproportionate investment across sectors
There is a notable mismatch between sectors’ emissions contributions and the investments they attract. For instance, transportation receives nearly half of all climate tech venture funding, despite contributing only 10–15 percent of emissions. This is largely because electric mobility offers immediate economic benefits, such as lower total cost of ownership, making it attractive for investors.
Only about 4 percent of climate investments in India have gone into industrial decarbonization, even though industry accounts for roughly a quarter of emissions. High abatement costs (typically, $ cost per metric tonne of CO2 equivalent reduced or eliminated) and the need for deep technological innovation — especially in sectors like cement and steel — have limited investor interest. Significant R&D breakthroughs are required to make these solutions cost-effective and scalable.
4. Deep tech and climate tech are intertwined
Many impactful climate interventions require deep science and hardware innovation, not just software. However, scaling such solutions is capital-intensive, and India’s funding ecosystem is still developing the depth needed to support late-stage growth for these ventures. The landscape is changing, with more researchers focusing on commercialization and entrepreneurship.
5. India’s unique strength in carbon removal
India is emerging as a global leader in natural carbon removal technologies such as enhanced rock weathering and biochar. These solutions leverage India’s abundant volcanic rock and agricultural waste, offering scalable, scientifically validated methods for permanent carbon sequestration. Startups in this space are gaining international recognition and funding.
6. Renewable energy deployment is accelerating
India’s rapid adoption of solar and wind energy has been a standout success, with ambitious targets set for 2030. However, as renewables become a larger share of the grid, challenges around storage and grid management will require next-generation technologies, such as long-duration batteries and decentralized energy resources.
7. Platform technologies drive energy transition
Startups such as Vimano, an Ankur portfolio venture, are developing core technology platforms — such as advanced ion-conductive membranes — that can serve multiple applications across energy storage, hydrogen production, and industrial processes. These platforms are critical for enabling the next wave of energy transition solutions and are attractive for their scalability and versatility.
8. Diversity and maturity in climate tech investments
Investment is becoming less concentrated, with significant funding now flowing into a range of sectors, including food and agriculture, energy, and carbon management. This diversification signals a maturing ecosystem where both early-stage and growth-stage companies are scaling up across various climate verticals.
9. Context-specific solutions for food and agriculture
India’s climate tech innovation in food and agriculture must be tailored to local conditions, such as smallholder farms and unique supply chain challenges. While global trends like autonomous farming are promising, Indian solutions will likely differ in approach, focusing on cost-effectiveness and adaptability to fragmented landholdings.
10. Future priorities: advanced materials and earth intelligence
Looking ahead, areas that Ankur Capital sees as promising include advanced materials (e.g., graphene, ceramics, new construction materials) and Earth and climate intelligence (including satellite-based data and AI-driven analytics). These areas are expected to underpin breakthroughs in energy, industry, and sustainable agriculture over the next few years.
My guest today is Vishal Katariya, a member of the investment team at Ankur Capital, an early-stage venture capital firm in Mumbai. Vishal is based in Bengaluru.
It’s World Environment Day today, and Vishal’s here to talk about why and how India is uniquely positioned to lead in building climate solutions that work for the world. Vishal is one of the authors of Ankur’s recent report on private investments in climate tech, titled Transforming India’s Core Sectors, along with Ankur’s founding managing partner Ritu Verma, Shiva Shanker, a partner, and Debansh Sahoo, who’s also on the firm’s investment team.
To quote from a brief on the report, entrepreneurs are drawing on India’s deep talent pool, a problem-solving mindset shaped by constraint, and a lived understanding of the Global South – not to chase emissions reductions alone, but because industries increasingly recognize that rethinking how we produce, grow, move, and power things is critical to staying competitive and creating long-term economic value in a changing world.
The report presents a data-backed analysis of how startups and venture investments are shaping these efforts. It tracks 2020–2024 funding trends across India and global markets in five sectors: energy, food and land use, transportation, industrial decarbonization, and carbon and climate management.
In this conversation, Vishal walks us through a quick overview of Ankur’s findings and briefly touches upon the implications for founders and investors.
