Indian climate startup Varaha has raised $20 million to expand carbon removal projects across emerging markets in the Global South.
Varaha has raised $20 million to expand its carbon removal operations across the Global South, as interest grows in climate solutions rooted outside wealthy economies.
The funding comes amid renewed scrutiny of carbon markets — and rising demand for verifiable, nature-based removal.
Carbon removal beyond offsets
Unlike traditional offsets, carbon removal focuses on drawing carbon dioxide out of the atmosphere and storing it durably.
Varaha works with:
- Smallholder farmers
- Regenerative agriculture
- Soil and biomass-based sequestration
The approach aligns climate mitigation with rural livelihoods.
Why the Global South matters
Most carbon removal capital has flowed into projects in the Global North. Varaha’s thesis is that:
- The Global South offers scale
- Nature-based solutions are cost-effective
- Climate finance can deliver development benefits
This dual impact is attractive to corporate buyers seeking credible climate action.
Verification is the hard part
Carbon markets suffer from trust deficits. The startup emphasizes:
- Measurement and verification
- Data-driven monitoring
- Long-term storage assurance
Without credibility, carbon removal loses legitimacy.
Investor interest in climate infrastructure
The $20 million round reflects a shift in climate investing from pilot projects to scalable infrastructure.
Investors are increasingly backing:
- Platforms, not one-off projects
- Measurement technology
- Long-term contracts
Varaha positions itself as infrastructure for carbon removal, not just a credit seller.
Risks remain
Carbon markets face:
- Regulatory uncertainty
- Price volatility
- Reputational risk
The startup must balance rapid scaling with rigorous science.
A broader signal
Climate mitigation cannot be confined to wealthy countries. Varaha’s growth suggests investors are finally aligning capital with where climate impact can be largest.
If successful, it could reshape how global carbon removal is sourced — and who benefits from it.
