Seoul 23, October, 2024: Sarmayacar, Pakistan’s pioneering venture capital firm, has secured $15 million from the Green Climate Fund (GCF) for its new Climaventures Fund, marking a major step in the development of the country’s climate-tech ecosystem. This investment, approved by the GCF Board in Songdo, South Korea, will anchor the Climaventures Fund, which aims for a $40 million hard cap.
The Climaventures Fund will focus on critical sectors such as renewable energy, electric mobility, and sustainable agriculture, providing local startups with both capital and strategic guidance. This initiative aims to position Pakistan as a regional leader in climate-tech while attracting international investment into climate-focused ventures.
Rabeel Warraich, CEO and Founder of Sarmayacar, stated, “Our new climate fund – a first for Pakistan – will support entrepreneurs building localised, scalable climate solutions. With this fund, we aim to create an entire ecosystem dedicated to climate ventures, leveraging our experience and networks both within Pakistan and internationally.”
Sarmayacar, founded in 2018, has already played a pivotal role in developing Pakistan’s startup scene through its first $25 million tech-focused fund, backed by the International Finance Corporation (IFC). That fund helped catalyse over $800 million in venture capital into Pakistani startups across various sectors. Now, under the leadership of Warraich and General Partner Dr. Bernhard Klemen, the firm is expanding its focus to address Pakistan’s urgent climate needs through the Climaventures Fund.
Dr. Bernhard Klemen added, “We plan to replicate the success of our first fund by investing in commercially viable opportunities that also deliver significant impact. With reputable partners like the GCF, we have a strong pipeline of startups ready to tackle Pakistan’s climate challenges.”
The endorsement from the Green Climate Fund emphasizes the important role venture capital must play in addressing climate change in emerging markets. The fund is expected to mobilize additional private capital, de-risk early-stage ventures, and attract further investment from global institutions.
Commenting on the launch, a Spokesperson from the Pakistan Prime Minister’s Office congratulated the Sarmayacar team on this achievement, stating, “This milestone reflects Pakistan’s growing leadership in climate innovation. The government fully supports efforts like the Sarmayacar Climaventures Fund, which will empower local entrepreneurs to create solutions that address our unique climate challenges and contribute to a more sustainable future.”
Looking ahead, Sarmayacar’s goal is to position Pakistan at the forefront of climate-tech innovation, driving scalable solutions to address the pressing climate issues facing the country. By continuing to foster impactful ventures and attract global capital, Sarmayacar is helping to shape a more sustainable future for both Pakistan and the wider region.
Osama Riaz, who has been closely involved in setting up the Climaventures Fund from the outset, also shared his thoughts on the milestone:
“I’m incredibly proud to see the Sarmayacar Climaventures Fund come to life. This fund represents not only a significant achievement for the firm but also a critical step forward for Pakistan’s climate-tech ecosystem. The challenges we face are immense, but with the backing of the Green Climate Fund and the vision of Sarmayacar’s leadership, I truly believe we are on the path to creating real, scalable solutions for the country’s most pressing environmental issues. It’s exciting to see the firm continue to push boundaries and drive impact in new and meaningful ways.”
