Mirova, a French investment firm focused on climate initiatives and backed by corporate heavyweights like Kering, has made a significant investment of $30.5 million (€26.4 million) in Varaha, an Indian climate tech startup. This investment will support Varaha’s regenerative farming program, benefiting hundreds of thousands of smallholder farmers in northern India.
Unlike traditional equity investments, Mirova’s contribution to Varaha is in the form of cash with a unique twist – in return, Mirova will receive a share of the carbon credits generated over time. This innovative approach aligns with Mirova’s strategy of investing in verified emissions-reduction projects, with the goal of offsetting supply-chain emissions for companies like Kering, Orange, and L’Occitane Group.
Regenerative farming, which focuses on enhancing soil health and biodiversity through sustainable agricultural practices, is gaining popularity as a way to combat climate change and improve agricultural resilience. In India, where small farmers face challenges like declining soil fertility and unpredictable weather patterns, regenerative farming is both a necessity and a sustainable solution for farming communities.
Varaha, founded in 2022, specializes in designing and implementing carbon projects in regenerative agriculture, agroforestry, and biochar. The startup collaborates with 48 local partners to execute field operations, while its software monitors and verifies the environmental and social impact of these projects in real-time.
Mirova’s investment will specifically support Varaha’s Kheti project, which works with farmers in Haryana and Punjab to adopt low-emission practices and generate verified carbon credits. By promoting practices like direct seeding of rice and reduced tillage, Varaha aims to help farmers increase productivity, conserve soil carbon, and improve soil health over time.
The partnership between Mirova and Varaha will also focus on procuring the necessary machinery to implement regenerative farming practices effectively. By investing in tools like direct seeders and crop residue incorporation machines, Varaha aims to scale its impact and empower farmers to adopt sustainable agricultural methods.
Furthermore, Varaha’s carbon credits will be verified using Verra’s VM0042 methodology, with a revenue-sharing model that directly benefits participating farmers. The project is also pursuing Climate, Community & Biodiversity (CCB) certification from Verra, emphasizing the project’s commitment to environmental conservation, community empowerment, and biodiversity preservation.
Despite some controversy surrounding carbon credit verification organizations like Verra, Varaha remains committed to using their services due to their advanced scientific methodology in soil carbon assessment. Varaha also collaborates with other leading standards like Puro and Isometric to ensure transparency and credibility in its carbon offsetting efforts.
In addition to reducing emissions, Varaha’s technology aims to improve soil health, reduce water usage, minimize chemical inputs, increase crop yields, lower farming costs, and promote cleaner air. The startup also plans to implement programs specifically for women farmers, promoting gender equality and inclusion in rural communities.
Varaha’s global reputation received a significant boost earlier this year when it signed a groundbreaking agreement with Google, securing the world’s largest biochar carbon removal deal. Google has committed to purchasing 100,000 tons of carbon dioxide removal credits from Varaha by 2030, further validating the startup’s impact and potential for climate change mitigation.
With support from investors like RTP Global, Omnivore, and Orios Venture Partners, Varaha has raised a total of $12.7 million in venture funding to date. This includes a successful Series A funding round last year, which brought in $8.7 million to fuel Varaha’s mission of transforming agriculture through sustainable and innovative practices.
