Climate tech startup Chakr Innovation has raised INR 18 Cr ($2.2 Mn) funding from the Export-Import Bank of India (EXIM Bank). 

The funds were sanctioned under EXIM Bank’s Ubharte Sitare Programme (USP), as per reports.

Founded in 2016 by Kushagra Srivastava and Bharti Singhla, Chakr Innovation works in the segment of environmental sustainability and pollution reduction. The startup specialises in producing certified emission control devices for stationary diesel generators to mitigate air pollution and its adverse environmental and public health effects. 

Chakr Innovation is working in the sustainability segment when concerns regarding air quality and pollution-related challenges are increasing in the country. The startup aims to positively impact the environment and the entire country with its solution.

Earlier in 2021, Chakr Innovation raised an undisclosed sum as part of a Series B round from Neev Fund II— a sustainability and small and medium enterprise (SME) focused fund managed by SBICap Ventures. 

A few months back, SaaS climate tech startup sentra.world raised $2 Mn in a seed funding round led by Avaana Capital. Earlier, cleantech startup Newtrace raised $5.65 Mn in a seed round led by Sequoia Capital India and Aavishkaar Capital.

Although there have been innovations by climate tech startups in India, the segment is yet to see the same investment maturity or depth as other prominent areas. As per a Unitus and Climake India report in 2022, the Indian climate tech market needs a capital infusion of over $1 Tn by 2030.

However, VC firms are gradually increasing their focus on the sector. Earlier this year, Avaana Capital raised $70 Mn in the first close of its climate and sustainability Fund. Mumbai-headquartered impact venture fund Omnivore also announced the first close of its third fund at $150 Mn. 

Lately, plethora of Indian startups have been launched to focus on segments such as climate tech and clean tech. Some of these include — Ace Green Recycling, Clairco, Hygenco, among others.