Asia | December 5, 2023

British International Investment backs trio of climate tech funds in South Asia

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, December 5 — British International Investment, the UK’s development finance institution and impact investor, has made a $25 million allocation to GEF Capital’s third South Asia Growth Fund. The fund is looking to raise $300 million to provide growth capital to small and mid-sized global projects and companies that contribute to the transition to a low-carbon economy.

The fund, which is investing in India and southeast Asia, “will support our goal of enabling sustainable practices, with a focus on renewable energy, efficient resource management and cutting-edge environmental solutions,” said BII’s Srini Nagarajan.

BII has  committed to invest up to $1 billion in climate projects in India between 2022 and 2026. BII had likewise committed $25 million to GEF Capital’s second South Growth Fund, which closed at $200 million in March last year. 

Climate + Gender

Separately, BII made a $7 million commitment to Circulate Capital’s Ocean Fund alongside other DFIs such as IFC, European Investment Bank and Proparco. The Singapore-based fund has raised $73 million to invest at the intersection of climate tech, plastic recycling and the circular economy.

The Circulate Capital Ocean Fund is the first circular economy fund to qualify for the 2X Challenge; its gender-lens goals include creating opportunities for women in waste management and recycling.

The raise brings Circulate Capital’s total assets under management to $255 million, “an exciting measure of our success, but even more a testament to the growing appetite for investments that are delivering both deep impact and meaningful financial returns,” said Circulate’s Rob Kaplan.

Low-carbon transition

Finally, BII made an undisclosed commitment to Wavemaker Impact’s debut fund to reach its $60 million hard cap, more than double its $25 million target. Wavemaker Impact, the venture arm of Southeast Asia-focused climate tech investor Wavemaker Partners, also secured commitments from DFC and Triple Jump.

Wavemaker will use the capital to expand its portfolio and make follow-on investments in Series B rounds. The fund has made a half-dozen investments, and has four deals in final due diligence. Wavemaker Impact aims to build companies that will reduce 10% of global emissions by 2035.