Sarmayacar, Pakistan’s venture capital firm, has secured a $15 million anchor commitment from the Green Climate Fund (GCF) by the United Nations to tackle climate change through technology. This strategic partnership positions Pakistan as a growing hub for climate-tech innovation
The Lahore-based Sarmayacar recently launched Climaventures Fund to support climate-tech startups in Pakistan, focusing on sectors such as renewable energy, electric mobility, and sustainable agriculture. This fund aims to raise $40 million, with an additional $10 million directed toward an accelerator program run by the National Rural Support Programme (NRSP) to support even earlier-stage startups.
Key Highlights
- $15 million commitment: GCF pledges significant capital to Sarmayacar’s Climaventures Fund to encourage climate-tech innovation in Pakistan by supporting early-stage climate startups.
- Targeting $40 million: The Climaventures Fund has a hard cap of $40 million, with GCF’s commitment serving as the cornerstone.
- Track record of success: Sarmayacar’s previous investments have catalyzed over $800 million in venture capital, showcasing its expertise in scaling high-growth startups.
- Focus on critical sectors: The fund will prioritize startups in renewable energy, electric mobility, and sustainable agriculture, areas crucial to Pakistan’s climate resilience.
Fueling Pakistan’s Climate-Tech Ecosystem
Despite contributing just 0.9% of global greenhouse gas emissions, Pakistan ranks as the 8th most vulnerable country to climate change, according to the Global Climate Risk Index. The devastating floods of 2022 killed more than 1,700 people in Pakistan and caused an estimated $15 billion of damage.
With such a high degree of exposure, the need for scalable, locally-driven climate solutions is critical. Through the Climaventures Fund, Sarmayacar aims to help startups address these environmental challenges head-on.
The fund’s focus is on ventures that offer innovative solutions in sectors that are essential to Pakistan’s long-term climate resilience, including renewable energy technologies, EV infrastructure, and sustainable farming practices. By empowering these startups with both capital and strategic guidance, Sarmayacar hopes to accelerate the country’s transition to a more sustainable future.
Rabeel Warraich, CEO and Founder of Sarmayacar, emphasized the importance of innovation in tackling Pakistan’s climate challenges. “Addressing Pakistan’s climate emergency requires an approach that fosters entrepreneurial innovation,” he said. “Our new climate fund – a first for Pakistan – will back founders building localized, scalable climate solutions for the country. We hope to spawn an entire climate venture ecosystem by leveraging our experience and connectivity in the country and beyond.”
Founded in 2018, Sarmayacar is Pakistan’s first institutional venture capital firm, backing early-stage tech startups across a variety of sectors.
Tapping into global Climate-Tech investment momentum
The Green Climate Fund’s involvement highlights the increasing global momentum behind climate-tech investments. According to the Climate Policy Initiative’s Global Landscape of Climate Finance 2023 report, climate finance surged to $1.27 trillion annually in 2021-2022, nearly doubling from previous years. This trend underscores the urgent need to scale climate solutions globally, particularly in emerging markets like Pakistan.
Dr. Bernhard Klemen, General Partner at Sarmayacar, highlighted the firm’s experience and ambition in scaling impactful startups. “Since launching Pakistan’s first VC fund in 2018, Sarmayacar has built a track record of identifying and supporting market-transforming startups in the country,” he said. “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 GCF’s endorsement would provide crucial early-stage funding but also act as a catalyst to mobilize further private capital into Pakistan’s climate-tech sector.
Vision for a sustainable future
Sarmayacar plans to position Pakistan as a leader in climate-tech innovation, with the Climaventures Fund supporting the next generation of climate-tech entrepreneurs and unlocking sustainable growth opportunities for Pakistan.
Sarmayacar’s commitment to driving innovation through venture capital has already made a significant impact on Pakistan’s tech ecosystem. The firm’s previous $25 million tech-focused fund, backed by the International Finance Corporation (IFC), catalyzed over $800 million in venture investments across sectors like fintech, e-commerce, and healthtech.
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