Varaha, a climate technology startup from India, has successfully secured $20 million in new funding aimed at expanding its carbon removal initiatives across the Global South. This investment positions Varaha as a cost-effective provider of verified emissions reductions.
This funding represents the initial phase of a larger $45 million Series B fundraising campaign, spearheaded by WestBridge Capital, marking the venture firm's inaugural foray into climate technology. Other contributors include established investors such as RTP Global and Omnivore. Since its inception in 2022, Varaha has attracted approximately $33 million in equity, in addition to $35 million in project financing and $500,000 in grants, while it develops carbon removal projects throughout Asia and Africa.
India has become a crucial hub for carbon removal projects, benefiting from lower operational costs, robust agricultural supply chains, and a wealth of technical expertise. As demand for verified carbon removals increases, particularly from companies with rising energy requirements due to data centers and AI operations, Varaha aims to leverage these advantages. The company believes its execution-driven approach enables it to provide carbon removal services at a reduced cost while adhering to the same international verification standards as pricier competitors in Europe and North America.
According to co-founder and CEO Madhur Jain, Varaha's strength lies not in proprietary technology but in its operational execution. He noted that high operational costs could hinder carbon removal developers in wealthier regions as market pressures increase.
"For businesses purchasing carbon credits, it represents a cost on their balance sheet rather than a mere CSR item," Jain explained. "If the cost in certain regions is significantly higher, it will be challenging for those companies to remain viable."
Varaha's carbon removal strategies encompass four primary pathways: regenerative agriculture, agroforestry, biochar, and enhanced rock weathering. The startup collaborates predominantly with smallholder farmers and industrial partners in emerging markets, generating and selling verified carbon removal credits through international registries such as Puro.earth, Isometric, Verra, Gold Standard, and Carbon Standards International from Switzerland, thereby catering to global corporations seeking reliable emissions reductions.
To date, Varaha has successfully removed over 2 million tons of carbon dioxide through 14 active projects, resulting in approximately 150,000 carbon removal credits. Jain highlighted that Varaha was the first Indian company to issue carbon credits from biochar projects and the first in Asia to do so from enhanced rock weathering via an international registry.
Last financial year, Varaha reported revenues of ₹430 million (around $4.76 million) from delivered credits, with expectations to increase this figure to nearly ₹2 billion (approximately $22.15 million) in the current year while maintaining profitability after tax.
The startup has established long-term agreements with global buyers, including major corporations like Google and Microsoft, as well as companies such as Lufthansa, Swiss Re, and Capgemini.
Varaha operates in India, Nepal, Bangladesh, Bhutan, and the Ivory Coast, working with approximately 170,000 to 175,000 farmers across about 1.7 million acres. The recent funding will facilitate its expansion into additional markets in South and Southeast Asia, including Vietnam and Indonesia, while reinforcing its presence in existing regions.
Additionally, Varaha is launching an Industrial Partners Program that enables industrial operators with access to sustainable biomass and gasification capabilities to create verified biochar-based carbon removal credits using Varaha's measurement, reporting, and verification systems. This program is already active with partners in West Africa and India, including agribusinesses and a steel producer, as Varaha seeks to scale carbon removal through collaborations rather than owning all assets.
"The challenge is so vast that technology will likely become open-source over time," Jain remarked. "Thus, what truly matters is execution."
Varaha employs around 225 to 230 individuals, with approximately 55 working in technology, science, product, and data roles. Over 80% of its workforce is based in India, although the startup has team members in markets such as Nepal, Germany, the U.S., and Australia, reflecting its expanding international clientele.
"We believe Varaha is uniquely positioned to establish a global carbon-removal platform from India, combining integrity, scale, and impact," stated Sandeep Singhal, co-founder and managing partner at WestBridge Capital. "This investment underscores our confidence in the team and their potential to influence the next phase of climate infrastructure globally."
