Climate tech startup Sustainiam, specializing in carbon management and sustainability solutions, has raised $1.45 million (approximately Rs 12.14 crore) in its first institutional funding round. Early-stage venture firm Orios Venture Partners led the investment.

The funding round also attracted notable investors, including actress Shilpa Shetty Kundra, GSF Accelerator founder Rajesh Sawhney, IPL Biologicals president Harsh VardhanBhagchandka, and former Orios Venture partner Vinit Bhansali. The funding will support Sustainiam in launching a digital platform for trading environmental assets, expanding its workforce in Noida, and broadening its global operations.

Founded in September 2023, Sustainiam offers tech-driven carbon footprint management solutions. Its platform enables businesses to trade international renewable energy and carbon certificates. The startup has attracted over 140 clients, including major brands like Coca-Cola, ITC, Unilever, Brookfield, and H&M. Sustainiam’s innovative approach helps companies reduce their environmental impact while engaging in global sustainability efforts.

“What we are building is a digital front for the registration process, making the submission of carbon assets and project documentation fully digital. This will provide a more streamlined way for recipients of these carbon assets to record documentation and generate tradable assets, all in a single digital platform,” founder and chief executive Sapna Nijhawan said.

Sustainiam has launched its first product focusing on carbon emissions and plans to introduce its exchange and registration platform in January. According to CEO Nijhawan, the startup is currently trading over 600 million kilowatt-hours (kWh) in carbon assets and aims to reach a revenue of Rs 70 crore by 2025. This move solidifies its position in the growing carbon trading market, empowering businesses with effective sustainability solutions.

“While we serve globally, the most prominent regions are the US, Europe, India, and China, which are the four largest markets, followed by countries like Canada, the Middle East, and Singapore,” she said.

In recent years, climate-focused risk capital investors and generalist venture capital firms have shown increased interest in this segment. The supportive policies and a growing base of consumers were drawing risk capital investors to support climate tech startups in India, especially in the early stages.

Commenting on the investment, Sukhmani Bedi, partner at Orios Venture Partners, said, “At Orios, this marks our second investment in companies focused on creating, issuing, and trading carbon certificates, reflecting our strong belief in the pivotal role of carbon markets in achieving a net-zero emissions future.”

Shetty Kundra said, “By leveraging cutting-edge technology, Sustainiam is making it easier and more efficient for companies to offset their carbon footprints, drive climate action, and contribute to global efforts in combating climate change. This platform not only enhances transparency and accountability in the carbon credits market but also empowers a wider audience to participate in the transition to a low-carbon economy.”