Mumbai, July 24, 2024: India Accelerator on Wednesday launched a new vertical -- Circular Economy, dedicated to boost the growth of potential startups in the segment. The vertical aims to support startups that are closely looped into sustainability business models, waste reduction, energy efficiency and climate change.
Based on a strategic approach, IA’s new thesis will be India’s only dedicated accelerator program to back the burgeoning growth of the circular economy. The vertical provides an extensive growth framework for clean energy, e-waste recycling, lithium-ion battery manufacturing, biotechnology, and decentralized water treatment startups. As part of the launch, IA plans to allocate Rs 1.5 cr per startup through Finvolve Accelerator Fund to scale startup operations and USD 500K per startup through Finvolve Seed Fund to support growing startups poised for expansion.
Optimistic about the announcement, Deepak Nagpal - Managing Partner, India Accelerator, said, “The global opportunity for the Circular Economy is expected to touch USD 4.5T by 2030. Adopting Circular Economy practices in India can help generate savings of over USD 624B by 2050 across food & agriculture, construction, and mobility. The Circular Economy opportunity is inevitable amid a widening demand supply gap and excessive dependence on imports to meet energy requirements. India’s leadership in technology and innovation creates an opportunity to accelerate its transition towards the Circular Economy, especially in light of greater cultural acceptance towards circular practices. With our recent endeavour, we aim to promote responsible consumption and production and fuel the growth of these startups.”
Elaborating on the agenda, Ashish Bhatia - Founder & CEO of India Accelerator, said, “The future of economic growth lies in sustainable practices and circular economy principles. However, this transition requires extensive planning at the macro level. With the new thesis, we aim to bring together the startups and key stakeholders onboard to redefine resource use and focus on building a regenerative future.”
India is moving on the track to become the world’s third-largest economy, under the government’s vision to make it ‘Atma Nirbhar’ or Self-Reliant. The initiatives act as a launch pad to India’s high economic growth that is inclusive and sustainable.
As part of the inception of the Circular Economy thesis, IA has already invested in sustainability startups, including eMines, Bonphul, Trashnet and Recycle Green. These startups have built advanced biofuels and green technology solutions, robust e-waste recycling systems, decentralized water treatment systems, plant-based leather and bio-material solutions.
“The investment deals in these startups underline our commitment to understand the application of innovation and technology for recycling and reusing waste materials into ecological means,” Nagpal said.
By January 2024, IA had 225 startups in its cohorts, while two-thirds of them successfully raised follow-on funding. It has exited nearly one-third of these startups and made healthy returns on investments in the past six years.
Apart from this, IA has dedicated verticals to focus on the growth of startups in different niches including - RUMS for Robotics and Unmanned Systems, Energy & Mobility, Generative AI and Media Entertainment & Gaming. The move to set up Circular Economy as a new focus further becomes the growth impetus for circular economy startups, providing a collaborative growth ecosystem, funding opportunities and resource access for market acquisition and scaling process.
