India’s Varaha raises $20M to scale carbon emissions in the Global South

Varaha, an India-based climate technology startup, has raised $20 million in new funding as it looks to scale up decarbonization projects in the Global South and position itself as a low-cost supplier to reduce emissions.

The investment marks the first part of a planned $45 million Series B round led by WestBridge Capital, the company’s first investment in climate technology, with participation from existing investors including RTP Global and Omnivore. Founded in 2022, Varaha has raised nearly $33 million in equity to date, as well as $35 million in project financing and $500,000 in grants, as it builds decarbonization projects across Asia and Africa.

India has emerged as an increasingly important base for decarbonization projects, offering low operating costs, deep agricultural supply chains, and a wealth of technical talent as the demand for certified decarbonization companies increases, including companies facing growing energy use in data centers and AI workloads. Varaha is positioning itself to capitalize on those benefits, arguing that its execution-oriented model allows it to deliver low-cost emissions while meeting the same international certification standards as higher-priced competitors in Europe and North America.

Varaha’s advantage lies in proprietary technology and more in execution, founder and chief executive Madhur Jain said in an interview, arguing that high operating costs could be a deterrent for emissions-rich markets as prices come under pressure.

“If a carbon credit is a cost to businesses that buy these carbon credits … it’s a cost on their balance sheet. It’s not a CSR thing,” Jain told TechCrunch. So, if the cost of a certain area is going to be too high for the equivalent amount, 1.5x to 3x the debt generation, it will be very difficult for those companies to survive.”

Varaha develops carbon sequestration projects in four main areas: regenerative agriculture, agroforestry, biochar, and enhanced rock climate, working mainly with smallholder farmers and industrial partners in emerging markets. The startup produces and sells carbon offset credits certified by international registries, including Puro.earth, Isometric, Verra, Gold Standard, and Carbon Standards International based in Switzerland, positioning itself as a supplier to global organizations seeking sustainable and independently verified reductions.

To date, Varaha has removed more than 2 million tons of carbon dioxide from 14 active projects, generating approximately 150,000 carbon credits, Jain said. He added that the startup was the first in India to issue carbon credits for biochar projects and the first in Asia to issue credits for improved weathering of rocks through international registration.

Varaha reported revenue of R430 million (about $4.76 million) last fiscal year from delivered credits and expects revenue to rise to about R2 billion (about $22.15 million) this year, while remaining profitable after tax.

The startup has signed long-term royalty deals with global buyers including Google and Microsoft, as well as companies like Lufthansa, Swiss Re, and Capgemini.

Varaha currently operates across India, Nepal, Bangladesh, Bhutan, and the Ivory Coast, working with about 170,000 to 175,000 farmers on more than 1.7 million hectares, Jain said. The latest funding will be used to expand into additional markets in South and Southeast Asia, including Vietnam and Indonesia, while deepening its presence in existing territories.

The startup also launched the Industrial Partner Program, which allows industrial operators to access sustainable biomass and gasification capacity to generate biochar-based carbon removal credits using Varaha’s measurement, reporting, and verification systems. The program is already working with partners in West Africa and India, including agribusinesses and a steel producer, as Varaha looks to measure carbon emissions through partnerships rather than owning every asset itself.

“The problem is so big that the technology, etc., will become open source over time,” Jain said. “So the most important thing is to kill.”

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

“We believe Varaha is uniquely positioned to build a global platform to decarbonize India, combining integrity, scale, and impact,” said Sandeep Singhal, founder and managing partner, WestBridge Capital. “This investment demonstrates our confidence in the team and their potential to shape the next phase of global climate infrastructure.”