Swedfund invests $35 mln in South Asia Growth Fund

Sweden’s development finance institution Swedfund invested USD 35 million in South Asia Growth Fund IV (SAGF IV), a private equity fund managed by GEF Capital Partners.

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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.

SAGF IV 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, a release said.

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, it added.

“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,” said 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.

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