Neev Fund: SBI and EIB's climate fund financing low-carbon SMEs

Neev Fund, managed by SBICAP Ventures Limited in Mumbai, is an infrastructure private-equity fund born of the SBI–UK DFID partnership to finance sustainable development. Its successor vehicle, Neev Fund II — backed by the European Investment Bank — provides growth and expansion capital to Indian SMEs offering solutions for clean energy, EVs, efficient materials, water and circular-economy projects. Neev Fund I deployed roughly $110M; Neev Fund II can invest up to EUR 100M under the SBI–EIB pact. (Note: the fund's official page at sbicapventures.com was unreachable during research; facts here are sourced from SBI/EIB announcements and press coverage.)

Investment thesis

The thesis is climate infrastructure through SMEs: India's low-carbon transition needs growth capital for small infrastructure projects and climate-tech SMEs that are too big for grants and too small for project-finance desks. Neev Fund II focuses deliberately on eight low-income states — Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal — where climate vulnerability and development need overlap.

Sectors, stages and cheque sizes

The fund provides growth and expansion capital (equity and quasi-equity) to SMEs and small infrastructure projects across renewable energy (solar, wind, hydro, biomass), agricultural supply chain (warehouses, cold storage), healthcare, education, urban infrastructure (water, sanitation, waste), electric vehicles, the circular economy and green hydrogen. Cheque sizes are not publicly disclosed.

Notable portfolio

Portfolio names include Blue Planet Environmental Solutions, Chakr Innovation, GPS Renewables, Hygenco, Nutrifresh and Smart Joules.

People

The platform is led by Suresh Kozhikote (MD & CEO, SBICAP Ventures), with Prem Prabhakar (MD & CEO, SBI Ventures) speaking for the climate strategy at industry forums such as the 2025 IVCA GreenReturns Summit.

Programs and founder support

Beyond Neev Fund II, a Climate Fund III for early- and growth-stage climate startups was announced at the IVCA GreenReturns Summit 2025. No formal credits or perks programme is publicly documented.

How to engage

Neev Fund II's mandate is unusually specific: climate-positive SMEs and small infrastructure projects, with a deliberate focus on eight low-income states — Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal. Founders in solar, wind, biomass, cold-chain warehousing, water and sanitation, waste management, EVs or green hydrogen should lead with the climate outcome and the project's bankability. As an SBI–EIB-backed institutional fund, expect rigorous infrastructure-style diligence — project economics, offtake certainty and execution capability matter more than venture-style growth narratives.