Varaha, a promising carbon removal company launched in 2022, has just raised a successful $20 million Series A round led by EQT, an investor on the rise. The firm aims to scale its innovative carbon removal projects across emerging markets, focusing on four primary pathways: regenerative agriculture, agroforestry, biochar, and enhanced rock weathering. This new round of funding gives Varaha the resources to expand its operations. Second, it puts the company in a good place to deepen its influence across the Global South.
Varaha’s work is primarily focused in India, where they work with both smallholder farmers and big industry players. In partnership, they make sustainable practices work to curb carbon emissions and increase agricultural efficiency and outputs. The company now has about 225-230 professionals on board, with more than 80% of its staff located in India. Of these employees, roughly 55 are focused in specialized roles that include technology, science, product development, and data analytics.
Looking to the future Varaha has outgrown its roots, with aspirations that stretch far beyond India. Now, staff members are dispersed across Nepal, Germany, the US, and Australia. Varaha’s wide geographical footprint gives them the unique ability to stack local expertise. All the while, it remains true to its mission of building local and regional agricultural supply chains. The company is taking advantage of a lower cost of operations in developing countries. This strategy simultaneously strengthens its competitive position in the emerging carbon credit markets.
So far, Varaha has raised a combined $33 million in equity funding from a Series A and Series B round. Beyond equity, it has gotten $35 million in project financing and is the recipient of $500,000 in grants. Since its founding the company has secured long-term offtake agreements with global giants including Google and Microsoft. In addition, it’s collaborated with corporates like Heathrow Airport, Lufthansa, Swiss Re and Capgemini. These agreements provide Varaha with a predictable revenue stream. They plan to produce and sell new, independently verified carbon removal credits into international registries, such as Puro.earth, Isometric, Verra, Gold Standard and Carbon Standards International (based in Switzerland).
Last fiscal year, Varaha made ₹430 million (around $4.76 million) in revenue just from the carbon credits they delivered. With the recent funding and ongoing projects, the company anticipates a significant rise in revenue, projecting nearly ₹1 billion (around $11.06 million) for the current year while maintaining profitability after tax.
Varaha is primarily based and active in India, Nepal, Bangladesh, Bhutan and Ivory Coast. They work with more than 170,000 active farmers on an amazing 1.7 million acres of land. Varaha’s approach integrates local farmers’ practices and wisdom. One of its primary initiatives is building a sustainable model that helps the environment and local economies thrive.
To Madhur Jain, another co-founder of Varaha, making carbon credits a non-negotiable cost of doing business can’t be overstated. So he doesn’t think they should be treated solely as a corporate social responsibility (CSR) requirement. He stated:
“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.”
This viewpoint is indicative of the positive trend toward understanding among corporations that they need to incorporate sustainability into their fundamental business models.
This significant understanding points to Varaha’s commitment to real world implementation. The company’s goal is to be the number one producer of carbon removal on Earth.
“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.”
Sandeep Singhal, another prominent figure at Varaha, expressed confidence in the company’s unique position within the market:
Varaha continues to rapidly grow and change. Its novel methods of carbon removal will help lead the world to address the pressing climate needs we all face. Varaha collaborates with local Sikkimese farmers and global corporations as environmental stewards and environmental allies. Beyond our shared humanitarian mission, this partnership fuels economic development in rising economies.
“We believe Varaha is uniquely positioned to build a global carbon-removal platform from India, combining integrity, scale, and impact.”
As Varaha continues to grow and evolve, its innovative approaches to carbon removal are set to play a pivotal role in addressing global climate challenges. Through partnerships with local farmers and global corporations alike, Varaha is not only contributing to environmental sustainability but also fostering economic growth in emerging markets.
