Key Takeaways:
- Sarmayacar has secured $15 million from the Green Climate Fund (GCF) for its new Climaventures Fund, aiming for a total of $40 million.
- An additional $10 million has been allocated to an affiliated venture accelerator program supporting early-stage climate-tech startups.
- The Climaventures Fund will invest in local startups focused on renewable energy, electric mobility, and sustainable agriculture.
- Sarmayacar aims to drive scalable climate-tech solutions in Pakistan, with the goal of positioning the country as a key player in regional sustainability efforts.
Venture capital firm Sarmayacar has announced the successful acquisition of $15 million from the Green Climate Fund (GCF) for its new Climaventures Fund, marking a significant milestone in the development of Pakistan’s climate-tech ecosystem. The GCF funding will anchor the new fund, which has a target cap of $40 million. Additionally, $10 million has been designated for a venture accelerator program, managed by the National Rural Support Programme (NRSP), to assist early-stage climate-tech startups. The GCF Board’s approval, following its meeting in Songdo, South Korea, reflects growing global attention on addressing Pakistan’s climate challenges with scalable solutions.
Focus on Climate-Tech and Sustainability
With the capital secured, the Sarmayacar Climaventures Fund will provide financial and strategic backing to local startups in key sectors, including renewable energy, electric mobility, and sustainable agriculture. These ventures will play a crucial role in addressing Pakistan’s pressing climate challenges, with the potential to drive both environmental impact and sustainable growth. The fund will also help attract international investment, positioning Pakistan as an emerging player in the global climate-tech landscape.
Rabeel Warraich, CEO and Founder of Sarmayacar, highlighted the fund’s objectives: “Addressing Pakistan’s climate emergency requires an approach that fosters entrepreneurial innovation. Our new climate fund – a first for Pakistan – will back founders building localised, scalable climate solutions for the country.”
Sarmayacar’s Track Record and Future Plans
Founded in 2018, Sarmayacar is Pakistan’s first institutional venture capital firm. Its initial $25 million fund, anchored by the International Finance Corporation (IFC), helped catalyze over $800 million in venture capital investments into Pakistani startups. The firm has supported high-growth ventures across sectors such as fintech, e-commerce, healthtech, and logistics. Now, with the Climaventures Fund, Sarmayacar aims to leverage its expertise and market knowledge to support the country’s climate-tech ecosystem.
General Partner at Sarmayacar, Dr. Bernhard Klemen, emphasized the potential of the new fund: “With this new climate-themed fund, we plan to replicate the playbook of our first fund and invest in commercially attractive opportunities that can also create significant impact.”
The Climaventures Fund will build on the firm’s established track record, aiming to support ventures that contribute to Pakistan’s broader environmental goals, particularly in light of the country’s vulnerability to climate change. Despite contributing only 0.9% to global greenhouse gas emissions, Pakistan ranks as the 8th most vulnerable country to climate risks, according to the Global Climate Risk Index.
Green Climate Fund’s Endorsement and Broader Impacts
The GCF’s investment underscores the critical role of venture capital in addressing climate change, especially in emerging markets like Pakistan. By de-risking early-stage climate ventures, the Climaventures Fund is expected to mobilize additional private capital, attracting further investment from global institutions.
As the climate-tech sector continues to gain momentum globally, Sarmayacar’s Climaventures Fund is positioned to make a meaningful contribution to Pakistan’s sustainability efforts. According to the Climate Policy Initiative’s Global Landscape of Climate Finance 2023 report, global climate finance averaged $1.27 trillion annually in 2021-2022, highlighting the growing demand for scalable climate solutions.