India's Varaha Raises $20M for Cheaper Carbon Credits

India-based climate tech startup Varaha has successfully raised $20 million as part of its planned $45 million Series B funding round. This investment, led by WestBridge Capital, will support the expansion of its carbon removal projects, focusing on scaling operations in the Global South. Varaha aims to position itself as a more affordable provider of verified emissions reductions.

The company was founded in 2022 and has since attracted approximately $33 million in equity funding, alongside additional project financing and grants. Varaha capitalizes on India's advantages, including reduced operating costs and skilled technical talent, to deliver carbon removal services that meet international verification standards at a competitive price point.

Varaha's carbon removal strategies encompass regenerative agriculture, agroforestry, biochar, and enhanced rock weathering, primarily engaging smallholder farmers and industrial partners. The startup has already achieved significant milestones, removing over 2 million tons of carbon dioxide across 14 projects and generating roughly 150,000 carbon removal credits. It has also established long-term offtake agreements with prominent global buyers such as Google and Microsoft.

Currently, Varaha operates in India, Nepal, Bangladesh, Bhutan, and Ivory Coast, engaging approximately 170,000 farmers across 1.7 million acres. The new funding will facilitate expansion into new markets in South and Southeast Asia, including Vietnam and Indonesia, while also strengthening its presence in existing regions. The startup is also launching an Industrial Partners Program to scale biochar-based carbon removal through collaborations.