Varaha Secures $20 Million to Expand Carbon Removal Initiatives in the Global South
Varaha, an Indian climate technology startup, has successfully raised $20 million in new funding to enhance its carbon removal projects across the Global South. This investment is the initial segment of a planned $45 million Series B funding round, spearheaded by WestBridge Capital, marking the firm’s inaugural venture into climate technology. Existing investors such as RTP Global and Omnivore also participated in this round. Since its inception in 2022, Varaha has accumulated approximately $33 million in equity, supplemented by $35 million in project financing and $500,000 in grants, to develop carbon removal initiatives throughout Asia and Africa.
India’s strategic position offers Varaha a competitive edge in the carbon removal sector, thanks to its cost-effective operations, extensive agricultural networks, and a vast pool of technical expertise. As global corporations increasingly seek verified carbon removal solutions to offset emissions from data centers and AI operations, Varaha aims to meet this demand by providing cost-efficient, internationally certified carbon credits.
Madhur Jain, co-founder and CEO of Varaha, emphasizes the company’s focus on execution over proprietary technology. He points out that high operational costs in developed markets could hinder the viability of carbon removal projects as pricing pressures mount. Jain notes, 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. 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.
Varaha’s carbon removal strategies encompass four primary approaches: regenerative agriculture, agroforestry, biochar production, and enhanced rock weathering. Collaborating predominantly with smallholder farmers and industrial partners in emerging markets, the company generates and sells verified carbon removal credits through esteemed international registries, including Puro.earth, Isometric, Verra, Gold Standard, and Carbon Standards International. This positions Varaha as a reliable supplier for global corporations seeking durable and independently validated 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. Notably, the company was the first in India to issue carbon credits from biochar projects and the first in Asia to do so from enhanced rock weathering through an international registry.
In the previous financial year, Varaha reported revenues of ₹430 million (about $4.76 million) from delivered credits and anticipates nearly doubling this figure to ₹1 billion (around $11.06 million) in the current year, while maintaining profitability after tax.
The company has secured long-term agreements with global buyers, including tech giants Google and Microsoft, as well as corporations like Lufthansa, Swiss Re, and Capgemini. Currently, Varaha operates in India, Nepal, Bangladesh, Bhutan, and Ivory Coast, engaging with approximately 170,000 to 175,000 farmers over an expanse of roughly 1.7 million acres. The recent funding will facilitate expansion into additional markets in South and Southeast Asia, including Vietnam and Indonesia, while strengthening its presence in existing regions.
Varaha is also introducing an Industrial Partners Program, enabling industrial operators with access to sustainable biomass and gasification capacity to generate 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 partnerships rather than owning all assets itself.
Jain underscores the importance of execution in addressing the climate crisis, stating, The problem is so big that tech, etc., will become open source over a period of time. So what matters the most is the execution.
With a workforce of approximately 225 to 230 employees, including around 55 in technology, science, product, and data roles, and over 80% based in India, Varaha is well-positioned to expand its global footprint. The company also maintains staff in markets such as Nepal, Germany, the U.S., and Australia, reflecting its growing international customer base.
Sandeep Singhal, co-founder and managing partner at WestBridge Capital, expresses confidence in Varaha’s potential, stating, 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.
