Kering-backed fund Mirova pours $30.5M into India’s Varaha for regenerative farming

Mirova, a French investment firm with a focus on climate initiatives and backed by major corporations like Kering, has committed $30.5 million (€26.4 million) to Varaha, an Indian startup dedicated to climate technology. This funding aims to enhance Varaha's regenerative farming program, which supports hundreds of thousands of smallholder farmers in northern India. This investment signifies Mirova’s inaugural foray into carbon investments within India, albeit through an unconventional approach. Rather than acquiring equity, the firm will provide cash funding in exchange for a portion of the carbon credits generated over time. This strategy aligns with Mirova's broader mission to channel corporate investments into verified projects aimed at reducing emissions. Among Mirova’s notable backers are brands such as Gucci's parent company Kering, Orange, L’Occitane Group, and Capgemini, all of which are focused on mitigating supply-chain emissions through credible carbon initiatives. Regenerative farming, which aims to restore soil health and promote biodiversity through techniques like crop rotation and reduced tillage, is emerging as an essential method for enhancing agricultural resilience against climate change. In India, where many small farmers contend with deteriorating soil fertility and unpredictable rainfall patterns, this approach is crucial for both survival and sustainability. Founded in 2022, Varaha is recognized for designing and managing carbon projects that encompass regenerative agriculture, agroforestry, and biochar. The startup collaborates with a network of 48 local partners to execute field operations, using advanced software to monitor project progress in real time, documenting both climate and social impacts. Mirova’s investment specifically targets Varaha’s Kheti project, which engages farmers in Haryana and Punjab to adopt low-emission practices while generating verified carbon credits that can provide supplementary income. Currently, the project spans over 200,000 hectares, with plans to expand to approximately 675,000 hectares, benefiting around 337,000 farmers as it scales. Varaha’s strategies are tailored to India’s agricultural landscape, particularly within the rice-growing regions. The startup emphasizes the importance of direct seeding techniques and the incorporation of crop residues into the soil, providing a viable alternative to the common practice of burning stubble post-harvest. Co-founder and CEO Madhur Jain highlighted that instead of incinerating crop residues, agricultural machinery is utilized to chop and mix it back into the soil, enhancing soil health. Moreover, Varaha advocates for reduced tillage practices, minimizing ploughing to just one or two rounds to conserve soil carbon and enhance its long-term storage potential. The funding from Mirova will be instrumental in acquiring the necessary machinery for implementing these regenerative practices. Jain noted the challenges in procuring sufficient direct seeders, as this method is not yet widely adopted, resulting in a scarcity of available equipment in the market. Carbon credits generated through the Kheti program will be verified using Verra’s VM0042 methodology, ensuring a revenue-sharing model that benefits participating farmers directly. The project is also pursuing Climate, Community & Biodiversity (CCB) certification from Verra, a non-profit organization that recognizes land management projects that yield environmental and community benefits. Despite facing scrutiny in the past regarding some projects, Varaha continues to prefer Verra due to its advanced scientific methodologies in soil carbon verification. In addition to mitigating emissions, Varaha’s innovative technology aims to enhance soil health, conserve water, reduce chemical inputs, increase crop yields, and lower farming costs—all while contributing to cleaner air. The startup is also committed to fostering gender inclusion in rural communities through dedicated programs for women farmers. Earlier this year, Varaha gained international recognition by signing what it described as the world’s largest biochar carbon removal agreement with Google, which plans to purchase 100,000 tons of carbon dioxide removal credits from the startup by 2030. Varaha has attracted investments from notable firms including RTP Global, Omnivore, Orios Venture Partners, and Japan’s Norinchukin Bank, raising a total of $12.7 million in funding, including $8.7 million from a recent Series A round.