India’s climate tech ecosystem is entering a decisive phase. As the country balances rapid economic growth with sustainability goals, the need for scalable, technology-led solutions in energy transition has never been more urgent. At the center of this shift are investors who are not just deploying capital, but actively shaping how innovation in climate and energy evolves.

In this conversation, Raiyaan Shingati, Co-Founder & Managing Partner at Transition VC, shares his journey into energy transition investing, the firm’s thesis-driven approach, and what it takes to build impactful and scalable climate businesses in India.

From Tech Investing to Climate Conviction

Raiyaan Shingati’s journey into climate investing was not accidental. Coming from a background in venture capital, he and his partners initially operated as sector-agnostic investors. However, a noticeable gap in hardware and deep-tech investments caught their attention.

A key inflection point came from observing the success of Ather Energy, which demonstrated that hardware-led innovation in India could scale and create category leaders. This prompted them to begin investing personally in early climate and energy startups, several of which went on to perform strongly.

That early validation led to the creation of Transition VC, a fund dedicated entirely to energy transition. Today, the firm has raised a ₹723 crore fund (around $80 million), significantly exceeding its initial target of ₹400 crore, reflecting growing investor confidence in India’s energy future.

For Raiyaan, this space is not just about climate responsibility. It is a multi-decade opportunity tied closely to India’s energy security and long-term independence in a rapidly changing geopolitical landscape.

A Different Take on Early-Stage Investing

Transition VC operates with a clear and differentiated philosophy. Unlike many traditional venture funds, it focuses on hardware-led, IP-driven businesses that are critical to India’s energy independence.

The firm invests at a specific stage: post-product but pre-product-market fit. This allows them to evaluate whether a product has real potential while still participating early enough to create outsized value.

Importantly, they prioritize:

• Strong technology moats

• High gross margins

• Positive unit economics

Raiyaan emphasizes that they do not believe in growth driven purely by cash burn. Instead, they look for businesses that can scale sustainably while maintaining financial discipline.

Balancing Growth and Sustainability

The broader startup ecosystem has shifted toward capital efficiency, but Raiyaan believes there is no universal formula.

Different markets demand different approaches. While some sectors may justify aggressive scaling and higher burn, climate and hardware businesses typically require a more measured path due to longer development cycles.

According to him, the real challenge is not choosing between growth and sustainability, but finding the right balance based on market size, resources, and timing.

A Thesis-Driven Approach to Investing

One of Transition VC’s defining characteristics is its top-down, thesis-driven model.

Before making any investments, the team spends years identifying:

• High-potential sectors and subsectors

• Specific problem statements

• Large “white space” opportunities

In 2022 alone, the firm mapped out 42 such white spaces. Over the following years, they have been selectively investing in those areas where they find the right founder-market fit.

This structured approach enables them to:

• Move faster in decision-making

• Engage deeply with founders

• Build strong conviction before investing

Where the Opportunities Lie in Energy Transition

Transition VC invests across the entire energy value chain, spanning both generation and consumption. Some of the key areas they are particularly bullish on include:

• Industrial decarbonization

• Hydrogen economy

• Alternative fuels

• Energy storage

• Smart infrastructure like meters and data systems

• Data centers and energy infrastructure

Interestingly, Raiyaan notes that nearly 40% of their future investments could involve AI, not in flashy applications, but in foundational infrastructure that powers energy systems and large-scale computing.

Supporting Founders Beyond Capital

Given the long gestation cycles in climate tech, Transition VC takes a hands-on but non-intrusive approach.

They avoid interfering in day-to-day operations but provide:

• Strategic guidance

• Access to industry networks

• Support in go-to-market execution

• Help with manufacturing and supply chain challenges

A unique advantage comes from their LP base, which includes experienced operators and industry leaders. This allows portfolio companies to tap into real-world expertise, accelerate revenue generation, and shorten sales cycles.

Case in Point: FitSoL

One of Transition VC’s portfolio companies, FitSoL, reflects their investment philosophy well.

The company focuses on helping manufacturers reduce carbon emissions while also cutting costs. What stood out to Raiyaan was the founders’ ability to identify inefficiencies within large organizations and build a platform that aligns sustainability with profitability.

FitSoL has scaled rapidly, reaching approximately ₹60 crore in revenue and targeting ₹200 crore in the near term, with strong unit economics and significant order visibility.

For Raiyaan, this reinforces a key belief:
climate solutions must make financial sense to scale effectively.

Climate + Profitability: The Only Scalable Model

A recurring theme in the conversation is clear. Climate innovation cannot rely on intent alone. It must be economically viable.

Raiyaan puts it simply:
If a solution cannot make money, it will not scale.

Transition VC’s investment lens is built around one core question:
Can a startup reduce emissions while making existing solutions faster, cheaper, or better?

If the answer is yes, it becomes a strong candidate for investment.

Staying Within the Circle of Competence

While climate intersects with sectors like fintech, especially in areas like carbon markets and climate financing, Transition VC remains disciplined.

The firm prefers to stay within its core expertise in energy and infrastructure, collaborating with other specialized investors rather than stretching into unfamiliar territory.

This focus, Raiyaan notes, has consistently paid off over his investing career.

Advice for Founders Building in Climate Tech

For founders entering the climate and energy space, Raiyaan emphasizes clarity of intent above all else.

He advises entrepreneurs to:

• Focus on solving real, large-scale problems

• Build for long-term impact, not short-term hype

• Stay resilient and adaptable

• Avoid being overly attached to a single solution

• Be ready to pivot based on data and market feedback

Ultimately, success in climate tech requires both conviction and flexibility.

Conclusion

As India moves toward a more sustainable and energy-secure future, investors like Raiyaan Shingati are playing a crucial role in shaping the ecosystem. By combining deep sector understanding with disciplined investing and long-term vision, Transition VC is helping build the backbone of India’s climate innovation landscape.

The message is clear. The future of climate tech will not be driven by intent alone, but by solutions that are scalable, efficient, and economically viable.

And those who can strike that balance will define the next decade of innovation.