India’s Varaha will buy $20M to reduce emissions in the Global South

Varahaan Indian-based startup, has raised $20 million in funding as it seeks to reduce carbon emissions in the Global South and position itself as a low-cost abatement company.

The investment is the first part of a $45 million Series B round led by WestBridge Capital, the company’s first investment in the climate technology sector, with participation from existing investors including RTP Global and Omnivore. Launched in 2022, Varaha has raised $33 million to date, along with $35 million in project costs and an investment of 500,000 dollars, as it builds projects to remove carbon dioxide in Asia and Africa.

India has become a key player in emissions projects, offering low-cost capital, deep agricultural chains, and great technical talent as the industry’s demand for proven emissions rises, including from companies facing growing energy use from data centers and increasing AI applications. Varaha is positioning himself to take advantage of the benefits, arguing that his execution-focused model allows him to deliver carbon emissions at a lower cost while meeting stringent international standards as more expensive competitors in Europe and North America.

Varaha’s advantage lies less in proprietary technology and more in execution, co-founder and CEO Madhur Jain said in an interview, arguing that low prices could be a barrier for startups to take off air in rich markets because prices come down.

“If a carbon credit is a cost to businesses that are buying these carbon credits … it’s a cost on their paper. It’s not a CSR thing,” Jain told TechCrunch. “And as a result, if the cost of some property is going to be very high according to the size of the loan by 1.5x to 3x, it will be very difficult for the company to survive.”

Varaha develops carbon removal projects in four main ways: regenerative agriculture, agroforestry, biochar, and enhanced weathering of rocks, working more with small farmers and partners in emerging markets. The startup produces and sells certified carbon credits through international registries, including Puro.earth, Isometric, Verra, Gold Standard, and Carbon Standards International from Switzerland, positioning itself as a supplier to global companies seeking sustainable and acceptable carbon reductions.

To date, Varaha has removed more than 2 million tonnes of carbon dioxide from the 14 projects it operates, and has created around 150,000 carbon dioxide emissions, Jain said. He added that the initiative was India’s first to issue carbon credits from biochar projects and the first in Asia to issue carbon credits for fossil fuels through a global registry.

Varaha reported a revenue of ₹430 million (about $4.76 million) last financial year from loans issued and expects revenue to rise to about ₹2 billion (about $22.15 million) this year, while remaining profitable after tax.

The startup has signed a long-term partnership with buyers from all over the world including Google and Microsoftas well as organizations such as Lufthansa, Swiss Re, and Capgemini.

Varaha currently operates in India, Nepal, Bangladesh, Bhutan, and the Ivory Coast, working with about 170,000 to 175,000 farmers on about 1.7 million acres, Jain said. The latest investment will be used to develop additional markets in South and Southeast Asia, including Vietnam and Indonesia, and expand its presence in existing locations.

The initiative is also the establishment of the Industrial Partners Program, which allows industrial operators to have permanent access to biomass and gasification energy to create a proven record of carbon removal from biochar using Varaha measurements, reports, and verification. The program is already working with partners in West Africa and India, including small businesses and steel producers, as Varaha looks to scale up emissions through partnerships rather than full ownership.

“The problem is so big that the technology, and many other things, may be open for a long time,” Jain said. “So the most important thing is execution.”

Varaha employs about 225 to 230 people, including about 55 in technology, science, marketing and data roles, with more than 80% of its workforce in India. Although the startup does not maintain offices overseas, it has employees in markets including Nepal, Germany, the US, and Australia, reflecting a growing global customer base.

“We believe Varaha is uniquely positioned to build a global platform for decarbonization from India, combining integrity, scale, and results,” said Sandeep Singhal, co-founder and managing partner, WestBridge Capital. “This investment demonstrates our commitment to this group and their ability to shape the next phase of global climate change.”