Climate-tech startup Varaha has recently announced a $8.7 million Series A funding round, marking a significant milestone in its journey to combat climate change through innovative carbon credit generation. Spearheaded by RTP Global, the funding round saw contributions from Omnivore and Orios—both returning investors. This round is notable for being the first investment by Norinchukin Bank, one of Japan’s most substantial institutional investors, in an Indian startup. Additional participation came from AgFunder and the Octave Wellbeing Economy Fund, part of the IMC Pan Asia Alliance Group.
A Catalyst for Sustainable Change
At its core, Varaha aims to revolutionize the way carbon credits are generated, utilizing nature-based solutions to address the pressing issue of climate change. Varaha is an end-to-end project developer for carbon credits by incentivizing thousands of smallholders towards sustainable practices. Their cutting-edge Measurement, Reporting, and Verification (MRV) platform leverages remote sensing, machine learning, and scientific research to accurately quantify greenhouse gas sequestration and reduction. These projects not only contribute to the reduction of carbon emissions but also enhance agricultural productivity, increase biodiversity, and improve climate adaptation.
Varaha has made remarkable strides, enrolling over 700,000 acres of land across India, Bangladesh, Nepal, and Kenya. With more than 100 partners in these regions, Varaha is on a mission to expand its reach, aiming to quadruple the number of smallholder farmers within the next 12-15 months.
Beyond Carbon Credits
Varaha's efforts extend beyond traditional methods of carbon sequestration. By converting agricultural residue into biochar, a material that permanently locks away carbon, Varaha combats climate change and enhances soil fertility. Moreover, the company is exploring the potential of Enhanced Rock Weathering, a promising method that could significantly boost soil fertility while sequestering atmospheric carbon over the long term.
Madhur Jain, Co-Founder and CEO of Varaha, emphasizes the critical nature of their mission, stating, "With nearly 24% of global greenhouse gas emissions stemming from the agricultural sector, our mission to sequester and reduce carbon emissions is more critical than ever. Today’s funding is a testament to our commitment to drive impactful change."
Visionary Support and Future Goals
The enthusiasm and support for Varaha's mission are echoed by Galina Chifina, a Partner on RTP Global’s Asia investment team, who highlighted Varaha's team's unique approach to generating carbon credits through nature-based solutions. The recent funding will enable Varaha to further enhance its tech and science capabilities and expand its operations to new geographies in Asia and Sub-Saharan Africa, addressing the growing demand for high-quality carbon credits.
With the voluntary carbon offset market projected to reach $250 billion by 2050, according to Morgan Stanley estimates, Varaha is well-positioned to contribute to global climate action and carbon reduction efforts.
A Journey of Impact and Innovation
Since its inception in 2022 by co-founders Madhur Jain, Ankita Garg, and Vishal Kuchanur, Varaha has been dedicated to reducing agriculture's carbon footprint and improving the livelihoods of smallholder farmers. With backgrounds in agriculture, biotech, and software, the founding team brings a wealth of expertise and innovation to the table, setting Varaha on a path to becoming a key player in the global fight against climate change.
The recent Series A funding validates Varaha's mission and approach and sets the stage for the company's next phase of growth and impact. As Varaha continues to expand its reach and deepen its impact, it stands as a beacon of hope and innovation in the quest for a greener, more sustainable future.