Following Huruma’s success story in India, Kuali Fund launched to drive climate-resilient finance in India
14/10/2025
New Delhi, October 14, 2025. COFIDES, together with the European Union, GAWA Capital, and the
Embassy of Spain, officially launched the Kuali Fund in India. A new innovative impact investment
vehicle, Kuali Fund seeks to mobilize over EUR 200 million to accelerate the transition towards low-carbon economy and to strengthen climate resilience among vulnerable communities in India, Latin
America, and the Caribbean.
Supported by the European Union, the Spanish Agency for International Development Cooperation
(AECID), and the Green Climate Fund (GCF), and managed by GAWA Capital with structuring by
COFIDES, Kuali Fund will channel investment into financial institutions and companies providing
innovative climate adaptation and mitigation solutions.
In India, Kuali aims to reach over 250,000 smallholder farmers and innovative SMEs, while avoiding
more than 1.2 million tons of CO₂ emissions over the next decade. India represents a cornerstone of
Kuali’s strategy—not only due to its scale and climate vulnerability, but also because of its vibrant
entrepreneurial ecosystem and strong potential for replicable climate innovation. By anchoring a
significant share of the portfolio in India, Kuali enhances its geographic and sectoral diversification,
catalyzes inclusive growth, and broadens exposure to a dynamic ecosystem of climate solution
providers.
This follows the success and experience of the Huruma Fund which pioneered financing for
smallholder farmers and agri-SMEs traditionally excluded from the financial system across Latin
America, Africa, and Asia, including India. The new fund was announced at the conference “Inclusive
and Green Finance in India for Smallholders and SMEs: Lessons Learnt and Opportunities from
European Funded Instruments.” Both Huruma and Kuali illustrate the power of combining public and
private resources to create measurable impact in the agri-food sector and beyond.
Announcing the launch of the Kuali Fund in India, Luca Torre, Co-CEO, GAWA Capital said “the Kuali
Fund has been set up with the objective of investing in companies that help vulnerable communities
become more climate resilient. Leadership and support of the European Commission, COFIDES,
AECID, and the Green Climate Fund have been essential behind setting up of the Kuali Fund. Special
thanks to our Indian partner, Small Industries Development Bank of India (SIDBI) – whose collaboration
will be key to bringing this initiative to life on the ground.”
During the Fireside Chat on Climate Change Challenges and Opportunities, José Carlos Villena, Director
of Development Finance at COFIDES, highlighted the importance of stronger cooperation between
European and Indian partners to bridge the climate finance gap, particularly in adaptation. He
emphasized that “public–private partnerships are fundamental to making climate finance work on
the ground.” Villena underscored that “development finance institutions must design structures that
align public objectives with private incentives — leveraging instruments such as the Huruma and
Kuali Funds — to channel investment towards adaptation.” He concluded by noting that
“collaboration between Europe and India is essential to transform this shared vision into tangible,
lasting impact for local communities.”
BUILDING ON SUCCESS: THE HURUMA FUND AND INDIA
The launch also highlighted experiences from the Huruma Fund, which has successfully pioneered
inclusive financing for smallholder farmers and agri-SMEs. Managed by GAWA Capital and supported by the European Union, Spanish Cooperation, and COFIDES, Huruma operates across Latin America,
Africa, and Asia.
India has emerged as the Fund’s largest exposure country, representing 28.2% of its total
investments, more than EUR 28 million across three equity operations. Through Huruma, thousands
of Indian smallholders have gained access to resources that improve productivity, resilience, and
sustainability, advancing inclusive rural development.
TEAM EUROPE-INDIA COOPERATION
The conference “Inclusive and Green Finance in India for Smallholders and SMEs: Lessons Learnt and
Opportunities from European Funded Instruments” underscored the growing collaboration between
Team Europe and India, showcasing how European blended finance instruments are fostering
sustainable development and climate adaptation, supporting smallholders in India rural areas and
help creating green jobs.
The event brought together representatives from the Government of India, the European Union, the
Embassy of Spain, the Green Climate Fund, Development Finance Institutions such as
PROPARCO, International Finance Corporation (IFC) and SIDBI, technical agencies including GIZ, and
and local financial institutions such as Sindhuja and Pahal. SIDBI (as Accredited Entity of GCF) and
Kuali Fund are collaborating to enable SMEs and Climate focused financial institutions expand their
green horizon by availing equity capital and technical assistance. Kuali will complement GCF funded
Financing Mitigation and Adaptation Project (FMAP project) being executed by SIDBI to scale up
funding to MSMEs in mitigation and adaptation aligned areas.
ABOUT COFIDES
COFIDES is a state-owned trading company that manages financial funds from the Spanish State, as
well as its own resources and those of third-party institutions with various objectives: the
internationalization of the Spanish economy, the attraction of foreign investment into strategic
sectors in Spain, the promotion of the impact economy in Spain, and the contribution to the
development of the countries in which it invests. In addition to the State, which holds a majority
position, other shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco
Sabadell, and CAF–Development Bank of Latin America.
ABOUT THE EUROPEAN UNION (EU)
The European Union (EU) is a unique political and economic union between 27 European countries,
established to foster economic cooperation, promote peace and stability, and enhance the well-being
of its citizens. Founded on the principles of democratic governance and the rule of law, the EU is
dedicated to improving the lives of its approximately 450 million inhabitants by implementing policies
that cover a wide range of areas including trade, security, environment, and human rights.
Championing policies that address environmental challenges and promote green growth, the EU
strives to lead the transition to a sustainable future, demonstrating its commitment to both current
and future generations.
EU-India relations: For over 60 years, the European Union and India have collaborated to reduce
poverty, prevent disasters, protect human rights, expand trade, and promote joint research in areas
such as energy, health, agriculture, and many other fields of mutual interest. More information at:
http://eeas.europa.eu/delegations/india
