India’s Varaha Bags $30M to Scale Carbon Removal from the Global South

India’s carbon removal startup Varaha has secured a landmark $30 million investment from sustainable investment firm Mirova, fueling the expansion of regenerative agriculture and high-integrity carbon credits across the Global South.[1][6] This funding, equivalent to 26.4 million euros, marks Mirova’s largest nature-based carbon commitment and its first in India, targeting over 337,000 smallholder farms on 675,000 hectares in key farming states.[1][2]

A Game-Changer for Smallholder Farmers and Climate Action

Varaha, founded in 2022, specializes in developing carbon dioxide removal (CDR) projects that empower smallholder farmers—those typically working plots under 10 hectares—who dominate India’s agriculture and feed 37% of its population.[6] The $30M infusion supports the “Kheti” project, promoting regenerative practices like direct rice seeding, crop residue management, and soil organic carbon enhancement.[1][7] These methods not only sequester CO2 but also boost soil health, crop yields, and farmer incomes through verified carbon credits under standards like Verra’s VM0042 methodology.[7]

The timing is critical. India grapples with balancing food security, farmer livelihoods, and climate goals amid rising emissions from agriculture. Varaha’s approach generates high-integrity removal credits sold to global buyers, creating revenue-sharing models that directly benefit farmers while diversifying risk across multiple pathways.[1][2]

Building a Diversified Portfolio of Carbon Removal

Varaha operates 20 projects across India, Nepal, and Bangladesh, involving around 150,000 farmers and projecting 1 billion tons of CO2 sequestration over 15-40 years.[2] Beyond regenerative agriculture, the company deploys:

• Biochar production: Converts crop waste like cotton stalks into stable soil amendments, preventing open-field burning that pollutes air and releases emissions.
• Enhanced rock weathering: Speeds mineral reactions to capture atmospheric CO2.
• Agroforestry and afforestation: Plants trees alongside crops for long-term storage.

This multi-pronged strategy appeals to tech giants seeking durable, verifiable removals. Since inception, Varaha has raised about $50 million from backers including RTP Global, Omnivore, Orios Venture Partners, and Japan’s Norinchukin Bank.[2]

Major Offtakes from Microsoft and Google Signal Market Momentum

The Mirova deal builds on high-profile partnerships. In January 2026, Microsoft signed a multi-year offtake for over 100,000 tons of CDR credits through 2029, expanding to 2 million tons over 15 years via 18 industrial biochar reactors in Maharashtra.[2][3][5] Focusing on cotton crop waste from 40,000-45,000 smallholder farms, the project curbs burning, improves soil via mulching and biochar application, and pays farmers for biomass and practices.[3][4]

Microsoft’s Phil Goodman highlighted the deal’s scalability, durability, and co-benefits like cleaner air and economic opportunities.[5] Varaha CEO Madhur Jain emphasized: “We’re not just removing carbon; we’re creating economic incentives for farmers to mitigate open burning of crop residues.”[3][4]

Earlier, in January 2025, Google committed to 100,000 tons of Varaha’s biochar credits—its largest such deal—positioning the startup as the world’s second-largest durable carbon deliverer.[2]

Empowering the Global South’s Climate Transition

Varaha’s model shines in the Global South, where smallholders face climate vulnerability but hold massive sequestration potential. The company’s 52-acre research farm in Maharashtra tests biochar and regen practices, serving as a demo for scaling reactors across India’s cotton belt.[4] Farmers gain dual payments: for waste supply and sustainable farming, fostering adoption without disrupting food production.[3]

This aligns with surging demand for Asia-sourced, high-integrity CDR. As AI and cloud ops drive tech emissions, buyers like Microsoft diversify portfolios with nature-based solutions that last centuries.[2][5] Varaha’s projects also tackle air pollution from residue burning, a major issue in northern India.

Challenges remain: Navigating credit verification, ensuring long-term farmer buy-in, and scaling infrastructure in remote areas. Yet, with $30M unlocking regen ag and offtakes de-risking biochar, Varaha is poised to lead.[1][6]

Looking Ahead: A Blueprint for Scalable Impact

By 2026, Varaha’s momentum underscores the viability of farmer-centric carbon removal. The Mirova investment spotlights soil carbon’s role in feeding billions while combating climate change—essential as Global South nations push net-zero ambitions.[6] Jain notes this as the largest soil carbon investment yet, proving smallholders can drive big wins.[6]

For investors, it’s a bet on diversified, verifiable CDR with social impact. For farmers, it’s new income amid uncertainty. For the planet, it’s durable removal at gigaton scale from overlooked regions. Varaha isn’t just bagging funds—it’s reshaping agriculture for a carbon-constrained world.

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Original source: TechCrunch – India’s Varaha bags $20M to scale carbon removal from the Global South