Bengaluru-based boutique investment advisory firm CaHa Capital has recently launched VAIA Climate Studio, a venture studio focused on climate tech and climate finance. The studio aims to develop startups from scratch, invest in them, and facilitate their growth.
In addition to establishing the venture studio, CaHa Capital, founded in 2020 by Iyer, specializes in investment strategy, capital deployment, and portfolio management. The climate studio business is its third vertical, alongside its existing boutique investment firm and ESG advisory.
Differentiating itself from venture capital firms and accelerators, VAIA Climate Studio is committed to incubating and developing its own startup ideas. It is believed to be the first climate-focused venture studio in India.
According to Iyer, climate is a fundamental part of the firm’s vision, and they aim to contribute to reversing climate change. She emphasized that while traditional VC firms invest in climate startups, the venture studio model is better suited to the sector. It supports early-stage innovation and high-quality entrepreneurs.
The studio’s approach involves identifying innovative ideas in climate tech and climate finance, conducting thorough research and market testing, building startups, recruiting co-founders, and creating minimum viable products (MVPs). Following this, VAIA Climate Studio will invest in the startups’ seed funding round and seek external investors to further support them. While diluting its equity holdings, the studio intends to retain at least a 20% stake in each venture.
VAIA Climate Studio has already initiated the development of one startup internally and possesses 60 ideas that it plans to build and scale. The studio is actively seeking ambitious and environmentally conscious entrepreneurs to serve as co-founders for its upcoming startups.
Over the next three years, the venture studio aims to incubate and fund approximately 15-16 startups, selecting five to six climate ideas annually based on meticulous research and due diligence.
Looking ahead, Iyer highlighted the substantial investment required in the climate sector, estimating the need for an additional $85 trillion in climate finance alone by 2040. She anticipates a significant increase in capital deployment and private investments, fostering continuous growth in philanthropic and private investments within the climate tech space.
