India Accelerator Launches 'Circular Economy' Thesis to Propel Sustainability Startups

India Accelerator (IA) has announced the launch of a new thesis - Circular economy, dedicated to boosting 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 INR 1.5 crores per startup through the Finvolve Accelerator Fund to scale startup operations and USD 500K per startup through the 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 and 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."

Elaborating on the agenda, Ashish Bhatia, Founder and CEO of India Accelerator added, “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 becoming the world’s third-largest economy, under PM Narendra Modi’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.

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.