Climate-Tech Startup Varaha Raises $8.7 Million for Expansion and Tech Innovation
Varaha, a climate-tech startup, has announced a successful funding round, raising $8.7 million. The funding was led by early-stage venture capital firm RTP Global, with existing investors Omnivore and Orios Venture Partners also participating. Notably, Japanese cooperative bank Norinchukin Bank joined as a part of the round as well.
The company plans to utilize the funds to strengthen its technology and science capabilities, expand its team, and invest in its supply chain. Additionally, Varaha aims to enter new markets, including East Africa and Southeast Asia, within the next 18 months.
Founded in 2022 by Madhur Jain, Ankita Garg, and Vishal Kuchanur, Varaha aims to reduce carbon emissions in farming practices and help large corporations gain carbon credits or offsets. As organizations face mounting pressure to reduce carbon emissions, Varaha assists corporates in offsetting their carbon footprint by implementing regenerative agriculture practices and reducing greenhouse gases released by farmers in India and neighboring regions.
The company collaborates with intermediaries, on-ground partners, and NGOs to achieve these goals. In terms of agriculture, Varaha works with farmers in Punjab and western Uttar Pradesh to enhance crop microbial strength, discourage crop residue burning, and improve soil microbial strength through biological interventions. The company extends its efforts beyond India, working with farmers in Nepal and Bangladesh as well.
Madhur Jain, the CEO of Varaha, highlights the abundance of agricultural land in India as a prime opportunity for the company. Jain states, “The idea is to scale and identify the right cropping systems for farmer cohorts and reduce carbon emissions… We do the due diligence by contracting our own staff on the ground, which collects data and assesses the impact of our intervention practices.”
Jain further reveals that Varaha has already secured contracts to generate 230,000 carbon credits this year, which are sold to carbon credit marketplaces like Klimate and Carbonfuture, as well as corporates. The company currently has partnerships with six institutions and aims to generate 1.2 million carbon credits by the end of FY25 and 2.8 million carbon credits in FY26.
RTP Global partner Galina Chifina recognizes Varaha’s potential, stating, “Varaha sits in the intersection of two of our big thesis around improving the lives of Indian farmers through technology as well as climate… And we think climate will be the next big disruptive market globally.” Chifina adds that Varaha plans to expand to six new geographies in the near future and intends to double its team to over 100 members in the upcoming fiscal year.
Varaha’s successful funding round showcases the growing importance of climate-focused technologies and solutions, as companies strive to reduce their carbon footprint. With ambitious plans for expansion and innovations in their technology, Varaha is well-positioned to make a significant impact in the climate-tech industry.
Analyst comment
Positive news. The market is expected to respond positively to Varaha’s successful funding round and expansion plans. The demand for climate-focused technologies and solutions is growing, creating a favorable market environment for Varaha’s offerings. With strong financial support and ambitious goals, Varaha is poised for success in the climate-tech industry.