Mirova, a French investment firm that focuses on climate-friendly projects and is supported by companies like Kering, has invested $30.5 million (€26.4 million) in Indian startup Varaha.
The deal includes both project financing and an offtake agreement, giving Varaha the support needed to grow its operations significantly.
With this funding, Varaha plans to expand its Kheti soil project tenfold, reaching 337,000 smallholder farmers in Haryana and Punjab over the next four years — a big jump from the 25,000 farmers it currently works with.
Mirova will provide the upfront capital to support this expansion, and in return, Varaha will supply them with carbon credits, which Mirova can use and retire to make their environmental claims,” said Ikarus Janzen, Chief Commercial Officer at Varaha.
Varaha is one of the few climate-tech companies that has already become profitable, achieving this milestone in FY25. Co-founder Janzen said that reaching profitability helps the company grow without depending too much on outside funding.
The company’s Kheti project focuses on promoting regenerative farming practices that are good for both farmers and the environment.
These practices include direct seeding of rice, managing crop residue instead of burning it, and reducing tillage to improve soil health.
By adopting these methods, the project generates carbon credits — tradable certificates that represent reduced greenhouse gas emissions. Varaha shares the revenue from selling these credits with the farmers, ensuring they benefit directly.
The project follows the Verra VM0042 methodology, created by Verra, a non-profit organization that sets global standards for climate action. This framework helps measure how much greenhouse gas reduction and carbon removal come from sustainable farming.
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