Press release —
Swedfund invests USD 35 million to accelerate climate action and resilience in India
Swedfund invests USD 35 million in South Asia Growth Fund IV (SAGF IV). The fund focuses on growth-stage companies in India that support large-scale emissions reduction and climate resilience. Swedfund’s investment aims to support climate action and resilience in a country with high emissions and high vulnerability to climate change.
India is one of the world's fastest-growing economies, but it also faces significant climate-related challenges, including rising energy demand, water stress and increasing exposure to extreme weather events. Achieving the country’s climate ambitions will require substantial private sector investments in solutions that reduce emissions, improve resource efficiency and strengthen resilience across key sectors of the economy.
“India’s transition to a more sustainable and climate resilient economy requires significant investment in innovative businesses that can deliver solutions at scale. Through this investment, we help channel long-term capital to companies that reduce emissions, improve resource efficiency and strengthen resilience across critical sectors of the economy. The fund’s strong track record and focus on climate-relevant businesses make it a valuable partner in advancing sustainable development in India,” says Gunilla Nilsson, Investment Director and Head of Energy & Climate at Swedfund.
Swedfund’s investment will help provide long-term growth capital to companies developing low-carbon, energy efficient and climate resilient products and services. The fund will invest in sectors such as the renewable energy value chain, water management and sustainable agriculture. By helping these businesses expand, the investment is expected to contribute to reduced emissions, greater climate resilience, job creation and sustainable economic growth.
Swedfund’s investment is part of an expected first close involving several other international development finance institutions and private investors. The fund has a target size of USD 600 million.
About South Asia Growth Fund IV
South Asia Growth Fund IV is a private equity fund managed by GEF Capital Partners. GEF Capital Partners has invested in environmental and resource-efficiency sectors since 2018 and has a dedicated team based in Mumbai. Swedfund has an established relationship with the fund manager, having previously invested in SAGF II and SAGF III and participated in a co-investment in Arya.ag in 2025.
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About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate. Swedfund shares the same goal as development cooperation in general, but the tools Swedfund uses are different. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector.
Swedfund's investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. Swedfund's feasibility studies support sustainable public infrastructure development, trade, and export opportunities for Swedish solutions.
We are part of Swedish development cooperation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance and financed through portfolio reflows and annual capital injections for which the Swedish Ministry for Foreign Affairs is responsible.
For more information: please visit www.swedfund.se/en
