Momentum Capital Shifts Climate Tech Focus Beyond Mobility in India

Momentum Capital, a venture capital firm that raised Rs 60 crore for its first fund last year, is altering its investment approach for climate technology in India. Previously, investments in this sector were heavily concentrated in mobility. However, the firm, led by founder and managing partner Ankur Shrivastava, is now shifting its focus. Momentum Capital will support Indian-origin founders, particularly those working on climate and health-related innovations that extend beyond the transportation sector. This strategic pivot comes at a time when India, despite being highly vulnerable to climate change, attracts less than 4% of global venture capital funding in climate technology. The firm's new strategy aims to foster growth in a wider array of climate solutions.

Impact: This shift by Momentum Capital could encourage greater investment and innovation in climate solutions beyond electric vehicles and related transport technologies. Investors might see new opportunities in areas like renewable energy storage, sustainable agriculture, waste management, and climate-resilient infrastructure. This could lead to the growth of startups in these diversified climate tech sub-sectors, potentially impacting their future valuations and market performance. Rating: 5/10.

Difficult Terms: Climate tech: Technologies that aim to reduce greenhouse gas emissions or help adapt to the impacts of climate change. Mobility sector: Refers to the transportation industry, including vehicles, infrastructure, and services related to moving people and goods. Venture Capital (VC): A type of private equity financing provided by firms or funds to startups and small businesses that are believed to have long-term growth potential. Corpus: The total amount of money available for investment within a fund. Indian-origin founders: Individuals who are citizens of India or have strong ties to the country, often starting businesses there or with a vision for the Indian market.