Varaha Secures $20M to Expand Carbon Removal Projects
India-based climate tech startup Varaha has raised $20 million in funding to enhance its carbon removal initiatives across the Global South. This funding is part of a $45 million Series B round led by WestBridge Capital, marking the firm’s initial foray into climate tech. Varaha, founded in 2022, has accumulated approximately $33 million in equity funding and $35 million in project financing, focusing on carbon removal projects in Asia and Africa.
### Varaha’s Approach to Carbon Removal
Varaha’s strategy centers on cost-effective carbon removal through regenerative agriculture, agroforestry, biochar, and enhanced rock weathering. By partnering with smallholder farmers and industrial entities in emerging markets, the company generates verified carbon removal credits. These credits are sold through international registries such as Puro.earth and Verra. Varaha’s CEO, Madhur Jain, emphasizes the company’s execution-focused model, which aims to provide cost-effective solutions while meeting global verification standards.
### Industry Context and Competition
India is becoming a hub for carbon removal projects due to its lower operational costs and a robust agricultural supply chain. As global demand for verified carbon removals grows, Varaha positions itself as a competitive player against higher-cost developers in Europe and North America. The startup has already removed over 2 million tons of carbon dioxide and issued 150,000 carbon removal credits. Varaha has secured long-term agreements with major corporations, including Google and Microsoft, underscoring its growing influence in the sector.
### Future Prospects and Market Impact
With plans to expand into new markets in South and Southeast Asia, Varaha is poised to increase its footprint significantly. The company is also launching an Industrial Partners Program to facilitate the generation of biochar-based carbon removal credits. This initiative reflects Varaha’s strategy to leverage partnerships rather than owning all assets, allowing for scalable growth. The recent funding will support these expansion efforts, highlighting Varaha’s potential to shape the future of climate infrastructure globally.
As Varaha continues to grow, its impact on the carbon removal industry could be substantial, providing cost-effective solutions to meet the increasing demand for verified emissions reductions.
