COFIDES, together with the European Union, GAWA Capital, the Embassy of Spain, and other partners, officially launched the Kuali Fund in India on 14 October 2025. This innovative impact investment vehicle aims to mobilize over EUR 200 million to accelerate the transition to a low-carbon economy and strengthen climate resilience among vulnerable communities in India, Latin America, and the Caribbean. Supported by the EU, the Spanish Agency for International Development Cooperation (AECID), and the Green Climate Fund (GCF), and managed by GAWA Capital with structuring by COFIDES, the fund will channel investments into financial institutions and companies offering innovative climate adaptation and mitigation solutions.
In India, the Kuali Fund plans to reach over 250,000 smallholder farmers and innovative SMEs, while aiming to avoid more than 1.2 million tons of CO₂ emissions over the next decade. India is a cornerstone of Kuali’s strategy due to its scale, climate vulnerability, and vibrant entrepreneurial ecosystem, which offers significant potential for replicable climate innovation. Anchoring a substantial share of the portfolio in India allows Kuali to enhance geographic and sectoral diversification, catalyze inclusive growth, and engage a dynamic ecosystem of climate solution providers.
The launch builds on the success of the Huruma Fund, which pioneered financing for smallholder farmers and agri-SMEs traditionally excluded from financial systems in Latin America, Africa, and Asia, including India. Both Huruma and Kuali demonstrate how public and private resources can be combined to create measurable impact in the agri-food sector and beyond. Luca Torre, Co-CEO of GAWA Capital, emphasized that the fund focuses on investing in companies that help vulnerable communities become more climate-resilient, with critical support from partners including the European Commission, COFIDES, AECID, GCF, and the Small Industries Development Bank of India (SIDBI).
José Carlos Villena, Director of Development Finance at COFIDES, highlighted the importance of Europe-India cooperation to bridge the climate finance gap, particularly for adaptation initiatives. He stressed that public–private partnerships are essential for effective climate finance, and that development finance institutions must align public objectives with private incentives using blended finance instruments like Huruma and Kuali. Collaboration between Europe and India, Villena noted, is key to turning shared visions into tangible, lasting impact for local communities.
The Huruma Fund has already demonstrated significant results in India, representing 28.2% of its total investments, or over EUR 28 million across three equity operations. Through Huruma, thousands of Indian smallholders have gained access to resources that enhance productivity, resilience, and sustainability, supporting inclusive rural development.
The launch and the accompanying conference, “Inclusive and Green Finance in India for Smallholders and SMEs,” showcased the growing Team Europe–India collaboration in fostering sustainable development and climate adaptation. Participants included representatives from the Government of India, the European Union, the Embassy of Spain, GCF, development finance institutions such as PROPARCO and IFC, technical agencies including GIZ, and local financial institutions like Sindhuja and Pahal. Working together, SIDBI and Kuali Fund aim to expand equity capital and technical assistance for SMEs and climate-focused financial institutions, complementing GCF-funded projects like the Financing Mitigation and Adaptation Project (FMAP) to scale up funding for MSMEs in mitigation and adaptation initiatives.
