India’s Varaha bags $20M to scale carbon removal from the Global South

Varaha, a climate tech startup based in India, has successfully raised $20 million in funding aimed at expanding its carbon removal initiatives throughout the Global South. This investment is part of a larger $45 million Series B funding round led by WestBridge Capital, marking the firm's inaugural foray into climate technology. Existing investors, including RTP Global and Omnivore, have also contributed to this round. Founded in 2022, Varaha has attracted approximately $33 million in equity financing, along with $35 million in project financing and $500,000 in grants. The company is actively engaged in developing carbon removal projects across Asia and Africa. India's advantages, such as lower operational costs, extensive agricultural supply chains, and a skilled workforce, position it as a vital hub for carbon removal initiatives, particularly as the demand for verified emissions reductions continues to climb. Madhur Jain, co-founder and CEO of Varaha, emphasizes that the startup's strength lies in its execution rather than proprietary technology. He notes that high operating costs in wealthier markets could hinder carbon removal developers, making it essential for companies to consider cost-effectiveness. Jain explained, "If carbon credits become a significant expense for businesses, they may struggle to survive, especially if production costs are significantly higher." Varaha implements carbon removal projects through four main methods: regenerative agriculture, agroforestry, biochar, and enhanced rock weathering, primarily collaborating with smallholder farmers and industrial partners in emerging regions. The startup generates and sells verified carbon removal credits through various international registries, catering to corporations seeking reliable emissions reductions. To date, Varaha has successfully removed over 2 million tons of carbon dioxide across 14 active projects, resulting in approximately 150,000 carbon removal credits. The company made history as the first in India to issue carbon credits from biochar projects and the first in Asia to do so for enhanced rock weathering. In the previous financial year, Varaha reported revenues of ₹430 million (around $4.76 million) from carbon credits, with projections to nearly double this figure to ₹2 billion (approximately $22.15 million) in the current year while remaining profitable after tax. The startup has secured long-term agreements with international buyers, including tech giants like Google and Microsoft, as well as corporations such as Lufthansa and Capgemini. Currently operating in India, Nepal, Bangladesh, Bhutan, and Ivory Coast, Varaha collaborates with around 170,000 to 175,000 farmers across 1.7 million acres. The recent funding will facilitate expansion into additional markets in South and Southeast Asia, including Vietnam and Indonesia, while enhancing its presence in existing regions. Varaha is also launching an Industrial Partners Program that allows industrial operators with access to sustainable biomass and gasification capabilities to create verified biochar-based carbon removal credits utilizing Varaha’s measurement and reporting systems. The program is already active with partners in West Africa and India, including agribusinesses and a steel producer, aiming to scale carbon removal through strategic partnerships rather than asset ownership. Jain remarked, "The challenge is vast, and technology will likely become open source over time. Execution will ultimately be the deciding factor." With a workforce of approximately 225 to 230 employees, including around 55 in technology, science, product, and data roles, Varaha's team is predominantly based in India. Although the startup does not maintain foreign offices, it has staff in markets such as Nepal, Germany, the U.S., and Australia, reflecting a growing international clientele. Sandeep Singhal, co-founder and managing partner at WestBridge Capital, stated, "We believe Varaha is uniquely positioned to establish a global carbon-removal platform from India, combining integrity, scale, and impact. This investment underscores our confidence in the team’s potential to influence the future of climate infrastructure worldwide."