Tata Capital to Draw $16 Million Revolving Facility From GCF to Back Climate-Tech Startups

Tata Group’s non-banking financial company (NBFC) arm Tata Capital has partnered with the Green Climate Fund (GCF) under its new Beacon India programme to back early-stage climate-tech startups in India. Implemented in collaboration with SIDBI and TREC-STEP -- an innovation and entrepreneurship development organisation, Tata Capital will secure the first-of-its-kind revolving facility of $15.85 million from the fund along with an additional $3 million grant for access to affordable finance for climate-focused startups.

As a revolving finance, Tata Capital will reinvest that money to fund new ventures ensuring the support continues for years to come.

The GCF was established by the 194 parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, aiming to enable a paradigm shift in the global response to climate change.

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Tata Capital said it will also contribute $47.6 million of its own funds to support startups. Overall, the initiative is expected to reduce over 1.1 million tonnes of carbon emissions and benefit nearly 2.9 million people through climate adaptation and mitigation efforts, according to the company.

“Through this programme, we aim to help emerging entrepreneurs scale their green technologies and make a measurable difference to people and the planet. After becoming the first private sector company in India to collaborate with GCF in 2019 for rooftop solar financing, Tata Capital now becomes the first Indian entity to collaborate with the GCF on two distinct climate programmes,” said Rajiv Sabharwal, Managing Director & CEO, Tata Capital.

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The NBFC offers a variety of loans including personal loan, home loan, SME loan, vehicle loan, education loan, loan against securities and property, and more with over 1,500 branches.

The significance of startups focusing on developing solutions to fight climate change and preserve the environment has gained momentum in recent years as India aims to reduce carbon emissions per ton of cargo by 30 per cent by 2030 and 70 per cent by 2047.