The revolving structure of the funding programme ensures long-term sustainability, with loan repayments from start-ups reinvested into new ventures, creating a continuous cycle of support for India’s green innovation ecosystem.
Tata Capital, the flagship financial services arm of the salt-to-software Tata Group, has partnered with the Green Climate Fund (GCF) under the newly approved BEACON INDIA Programme to support early-stage climate-tech start-ups across India. Through this collaboration, Tata Capital will receive a first-of-its-kind revolving facility of $15.85 million (Rs 132 crore), along with an additional $3 million (Rs 25 crore) grant to make financing more affordable for climate-focused ventures.
The revolving structure ensures long-term sustainability: as start-ups repay their loans, Tata Capital will reinvest the funds into new ventures, creating a continuous cycle of support for India’s green innovation ecosystem. The programme is being implemented in collaboration with the Small Industries Development Bank of India (SIDBI) and TREC-STEP, an innovation and entrepreneurship development organisation.
Rajiv Sabharwal, Managing Director and CEO of Tata Capital, said, “Our association with the Green Climate Fund to strengthen India’s climate innovation network is another step in that direction. Through this programme, we aim to help emerging entrepreneurs scale their green technologies and make a measurable difference to people and the planet.”
In addition to the GCF facility, Tata Capital will contribute $47.6 million (Rs 396 crore) of its own funds, reinforcing its commitment to building India’s climate innovation ecosystem. The initiative is expected to reduce over 1.1 million tonnes of carbon dioxide emissions and benefit nearly 2.9 million people through climate adaptation and mitigation efforts.
This partnership marks a significant milestone in Tata Capital’s climate finance journey. After becoming the first private sector company in India to collaborate with GCF in 2019 for rooftop solar financing, Tata Capital has now become the first Indian entity to partner with the fund on two distinct climate programmes.