Varaha Secures $20M to Scale Global South Carbon Removal

Varaha, an India-based climate technology startup, has successfully raised $20 million in new funding. This investment marks the initial tranche of a planned $45 million Series B round, aimed at significantly scaling its carbon removal projects across the Global South. The company is positioning itself as a leading, lower-cost provider of verified emissions reductions for the global market.

The Series B round is spearheaded by WestBridge Capital, marking its inaugural investment in the climate tech sector. Existing investors, including RTP Global and Omnivore, also participated. Founded in 2022, Varaha has rapidly grown, accumulating approximately $33 million in equity funding to date. This is complemented by $35 million in project financing and $500,000 in grants, supporting its expanding portfolio of carbon removal initiatives across Asia and Africa.

Leveraging India's Advantages for Cost-Effective Carbon Removal

India has emerged as a crucial hub for carbon removal projects, offering distinct advantages such as lower operating costs, robust agricultural supply chains, and a deep pool of technical talent. This is particularly relevant as corporate demand for verified carbon removals surges, driven by factors like increasing energy consumption from data centers and AI workloads. Varaha is strategically capitalizing on these strengths, asserting that its execution-focused model enables it to deliver carbon removal solutions at a significantly lower cost, while still adhering to the same stringent international verification standards as its more expensive counterparts in Europe and North America.

Madhur Jain, co-founder and CEO of Varaha, explained that the company's edge lies more in its execution capabilities than in proprietary technology. He highlighted that high operating costs could become a major hurdle for carbon removal developers in wealthier markets as pricing pressures intensify.

"If carbon credit is a cost to the businesses that are buying these carbon credits… it’s a cost on their balance sheet. It’s not a CSR item," Jain told TechCrunch. "And hence, if the cost of a certain geography is going to be so high by an order of magnitude of like, 1.5x to 3x credit production, it is going to be extremely hard for those companies to survive."

Diverse Pathways and Global Impact

Varaha implements carbon removal projects through four primary methodologies: regenerative agriculture, agroforestry, biochar production, and enhanced rock weathering. The startup primarily collaborates with smallholder farmers and industrial partners across various emerging markets. It generates and sells verified carbon removal credits through respected international registries, including Puro.earth, Isometric, Verra, Gold Standard, and Switzerland-based Carbon Standards International. This positions Varaha as a key supplier for global corporations seeking durable and independently validated emissions reductions.

To date, Varaha has successfully removed over 2 million tons of carbon dioxide through 14 active projects, generating approximately 150,000 carbon removal credits. Jain proudly noted that Varaha was the first company in India to issue carbon credits from biochar projects and the first in Asia to issue credits from enhanced rock weathering through an international registry.

Strong Growth and Strategic Expansion

Varaha reported revenues of ₹430 million (approximately $4.76 million) in the last financial year from delivered credits, with projections to reach nearly ₹2 billion (around $22.15 million) this year, while maintaining profitability after tax. The startup has secured long-term offtake agreements with major global buyers, including Google and Microsoft, alongside other prominent corporations such as Lufthansa, Swiss Re, and Capgemini.

Currently, Varaha operates across India, Nepal, Bangladesh, Bhutan, and Ivory Coast, engaging with an estimated 170,000 to 175,000 farmers across roughly 1.7 million acres. The recent funding will be instrumental in expanding its footprint into new markets in South and Southeast Asia, including Vietnam and Indonesia, while simultaneously strengthening its presence in existing regions.

Industrial Partners Program to Scale Impact

In a move to further scale carbon removal, Varaha is launching an Industrial Partners Program. This initiative empowers industrial operators with access to sustainable biomass and gasification capacity to generate verified biochar-based carbon removal credits. Partners will leverage Varaha’s advanced measurement, reporting, and verification (MRV) systems. The program is already active with partners in West Africa and India, including agribusinesses and a steel producer, reflecting Varaha's strategy to scale through collaborations rather than solely owning assets.

"The problem is so big that tech, etc., will become open source over a period of time," Jain commented. "So what matters the most is the execution."

Varaha maintains a team of approximately 225 to 230 employees, with about 55 dedicated to technology, science, product, and data roles. Over 80% of its workforce is based in India. While the startup does not operate overseas offices, it has staff in key international markets such as Nepal, Germany, the U.S., and Australia, underscoring its expanding global customer base.

Sandeep Singhal, co-founder and managing partner at WestBridge Capital, expressed strong confidence in the company: "We believe Varaha is uniquely positioned to build a global carbon-removal platform from India, combining integrity, scale, and impact. This investment reflects our conviction in the team and their potential to shape the next phase of climate infrastructure worldwide."