India's Varaha has secured $20 million in funding to scale its carbon removal projects across the Global South. This investment marks the first close of a $45 million Series B round led by WestBridge Capital. RTP Global and Omnivore also participated in the round, bringing Varaha's total equity raised to $33 million.
Varaha, founded in 2022, focuses on developing carbon dioxide removal (CDR) projects in Asia, with the goal of scaling climate solutions led by smallholder farmers. The company specializes in regenerative agriculture, agroforestry, biochar, and enhanced rock weathering projects throughout South Asia. They work directly with farmers to implement sustainable practices, including soil application of biochar. Varaha operates 20 carbon projects across India, Nepal, and Bangladesh.
The company has already removed over 2 million tons of CO2 across 14 projects and expects its revenue to increase from $4.76 million to $22.15 million this year while maintaining profitability. Major corporations like Google and Microsoft have already signed offtake agreements with Varaha.
Varaha's competitive edge lies in its cost-effective execution in emerging markets, delivering carbon removal at prices 1.5 to 3 times lower than its European and North American counterparts. The new funding will fuel Varaha's expansion into Vietnam and Indonesia as it scales its Industrial Partners Program with agribusinesses and steel producers.
The funding will support Varaha's mission to create a global hub for cost-effective carbon removal in India. Varaha's approach involves using scientific rigor and generating high-quality datasets for regional conditions to measure both carbon emission reduction and carbon sequestration. This enables farmers to earn more credits and income. The company partners with on-the-ground organizations to onboard smallholders in their carbon projects. Varaha verifies and validates the credits generated through its monitoring, reporting, and verification (MRV) systems and sells these credits to companies looking to offset their emissions.
Varaha's tree-planting initiative provides training and support to smallholder farmers to cultivate income-generating tree species. This boosts carbon sequestration and improves local livelihoods. The company is also exploring generating permanent-removal, high-quality biochar-based credits through a decentralized approach using the artisanal biochar-making process at the smallholder’s farmgate.
Varaha's work aligns carbon credit programs with farmers' economic priorities, making these initiatives more viable and long-lasting. The company’s founders have experience working in agriculture and with smallholder farms, focusing on partnerships with smallholder farmers across South Asia. These farmers use Varaha's regenerative agriculture and removal pathways to generate carbon credits and an additional income stream.