Varaha, a climate technology startup based in India, has successfully secured $20 million in new funding aimed at scaling its carbon removal initiatives in the Global South, establishing itself as a cost-effective supplier for verified emissions reductions.
This investment represents the first tranche of a targeted $45 million Series B funding round, led by WestBridge Capital, which marks the venture firm’s inaugural investment in climate technology. Existing investors, including RTP Global and Omnivore, also participated in this round. Since its inception in 2022, Varaha has raised approximately $33 million in equity, in addition to $35 million in project financing and $500,000 in grants, as it progresses with carbon removal projects across Asia and Africa.
India has evolved into a critical hub for carbon removal initiatives, presenting lower operational costs, extensive agricultural supply chains, and a substantial pool of technical talent. This growth is driven by increasing corporate demand for verified carbon removals, particularly from companies experiencing rising energy needs due to data centers and AI workloads. Varaha aims to leverage these advantages, asserting that its execution-oriented model enables it to provide carbon removal solutions at a lower cost while adhering to the same international verification standards as more expensive competitors in Europe and North America.
According to co-founder and CEO Madhur Jain, Varaha’s competitive edge lies more in its operational execution than in proprietary technology. Jain posits that high operational costs could hinder carbon removal developers in wealthier markets as pricing pressures intensify.
“If purchasing carbon credits incurs costs for businesses, it becomes a line item on their balance sheet rather than merely a corporate social responsibility (CSR) initiative,” Jain remarked in an interview with TechCrunch. “Consequently, if the cost from certain regions is significantly higher—by a factor of 1.5 to 3 times credit production—it will pose substantial challenges for those companies to sustain operations.”
Varaha is engaged in developing carbon removal projects across four primary pathways: regenerative agriculture, agroforestry, biochar, and enhanced rock weathering. The startup collaborates primarily with smallholder farmers and industrial partners in emerging markets. It generates and sells verified carbon removal credits through international registries including Puro.earth, Isometric, Verra, Gold Standard, and Carbon Standards International based in Switzerland, thereby positioning itself as a supplier to global corporations seeking sustainable and independently validated emissions reductions.
To date, Varaha has successfully removed over 2 million tons of carbon dioxide across 14 active projects, generating approximately 150,000 carbon removal credits. Jain noted that the startup became the first in India to issue carbon credits from biochar projects and led the way in Asia with the issuance of credits from enhanced rock weathering through an international registry.
TechCrunch Event
Boston, MA
|
June 23, 2026
Varaha reported revenue of ₹430 million (approximately $4.76 million) in the last financial year from delivered credits and anticipates revenue will grow to nearly ₹1 billion (around $11.06 million) this year, while continuing to remain profitable after tax.
The startup has established long-term offtake agreements with global buyers, including Google and Microsoft, as well as major corporations such as Lufthansa, Swiss Re, and Capgemini.
Currently, Varaha operates in India, Nepal, Bangladesh, Bhutan, and Ivory Coast, collaborating with approximately 170,000 to 175,000 farmers over an estimated 1.7 million acres. The recent funding will be utilized to expand into additional markets within South and Southeast Asia, including Vietnam and Indonesia, while strengthening its presence in existing regions.
Varaha is also launching an Industrial Partners Program, which enables industrial operators with access to sustainable biomass and gasification capabilities 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 strategic partnerships rather than outright ownership of all assets.
“The challenge is so immense that technology will likely become open source over time,” said Jain. “Thus, what truly matters is the execution.”
Varaha employs approximately 225 to 230 personnel, including about 55 in technology, science, product, and data roles, with over 80% of its workforce located in India. Although the startup does not maintain international offices, it employs staff in markets such as Nepal, Germany, the U.S., and Australia, reflecting its expanding international clientele.
“We believe Varaha is uniquely positioned to establish a global carbon removal platform rooted in India, embodying integrity, scalability, and impact,” stated Sandeep Singhal, co-founder and managing partner at WestBridge Capital. “This investment is a testament to our confidence in the team and their potential to influence the next phase of climate infrastructure globally.”
About the Author
