NextFin News - In a significant move for the global climate technology landscape, India-based startup Varaha announced on February 3, 2026, that it has successfully raised $20 million in new funding. This capital injection represents the first tranche of a planned $45 million Series B round, led by WestBridge Capital—marking the venture firm’s inaugural investment in the climate tech sector. The round also saw participation from existing backers including RTP Global and Omnivore. Based in New Delhi, Varaha plans to utilize the funds to scale its carbon removal projects across the Global South, specifically targeting expansion into Southeast Asian markets like Vietnam and Indonesia while deepening its footprint in India and East Africa.
The funding comes at a pivotal moment for the voluntary carbon market (VCM), which has faced scrutiny over credit integrity. Varaha distinguishes itself by focusing on high-permanence and scientifically verifiable removal pathways, including biochar, enhanced rock weathering (ERW), regenerative agriculture, and agroforestry. According to TechCrunch, the startup has already removed over 2 million tons of carbon dioxide across 14 active projects and has secured long-term offtake agreements with global giants such as Google and Microsoft. These corporations are increasingly seeking high-quality removals to offset the massive energy footprints of their expanding data centers and artificial intelligence workloads.
The economic logic driving Varaha’s expansion is rooted in the cost-efficiency of the Global South. Madhur Jain, co-founder and CEO of Varaha, emphasizes that as carbon removal transitions from corporate social responsibility (CSR) initiatives to a line-item expense on corporate balance sheets, price sensitivity will become a dominant factor. Currently, carbon removal projects in North America and Europe often face high labor, land, and operational costs. By contrast, Varaha leverages India’s deep agricultural supply chains and a large pool of technical talent to produce verified credits at a fraction of the cost. Jain argues that if the cost of production in wealthier markets remains 1.5 to 3 times higher, those developers will struggle to survive as the market matures and prices stabilize.
Varaha’s operational model is built on a "partnership-first" approach rather than heavy asset ownership. Through its Industrial Partners Program, the company provides measurement, reporting, and verification (MRV) systems to industrial operators who have access to sustainable biomass. This allows for the rapid scaling of biochar production—a process where organic waste is converted into a stable form of carbon that can be buried in soil for centuries. The startup was the first in India to issue biochar credits and the first in Asia to issue credits for enhanced rock weathering through international registries like Puro.earth and Isometric. This focus on international standards ensures that despite the lower cost of production, the "integrity" of the credit remains high enough for global institutional buyers.
From a financial perspective, Varaha’s growth trajectory is robust. The company reported revenues of approximately ₹430 million (roughly $4.76 million) in the last fiscal year and expects this figure to jump to ₹2 billion (around $22.15 million) in 2026. Crucially, the company claims to be profitable after tax, a rarity in the capital-intensive climate tech space. This profitability is supported by the rising price of "durable" carbon removals, which command a premium over traditional avoidance credits (such as forest protection) because they physically remove CO2 from the atmosphere and store it for long durations.
Looking ahead, the success of Varaha signals a broader trend: the decentralization of climate infrastructure. As U.S. President Trump’s administration continues to emphasize industrial competitiveness and energy independence, the global private sector is increasingly looking toward market-driven solutions for decarbonization. The entry of WestBridge Capital into this space suggests that traditional private equity and venture capital now view carbon removal not just as an environmental necessity, but as a scalable infrastructure play. As Varaha expands into Indonesia and Vietnam, it will likely face competition from local players, but its established relationships with global registries and tech-heavy MRV stack provide a significant first-mover advantage in the Global South’s emerging carbon economy.
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