In a significant boost to climate-friendly agriculture and sustainable farming practices, India-based Varaha has secured $8.7 million in Series A funding. The investment is set to bolster Varaha’s full-stack climate tech designed to measure and quantify carbon sequestration and emissions reduction for projects involving regenerative agriculture, afforestation, and biochar. This recent funding round was led by early-stage venture capital firm RTP Global, with participation from existing investors Omnivore and Orios. Additionally, Japan’s institutional investor Norinchukin Bank, along with new investors AgFunder and Octave Wellbeing Economy Fund, joined the financial infusion. Notably, AgFunder is also the parent company of AgFunderNews.
The funds are earmarked for Varaha’s expansion in Asia and East Africa, as well as for bringing in new talent to the company. The founders, Madhur Jain (CEO), Ankita Garg (COO), and Vishal Kuchanur (CTO), who all come from agricultural backgrounds supplemented by expertise in biotech and software, launched the company in 2022. Named after the boar avatar of the Hindu deity Vishnu, Varaha symbolizes the lifting of the earth from the cosmic ocean and its restoration—an ethos that aligns with the company’s mission to rejuvenate the planet.
The impetus for Varaha’s inception came from a recognition of the disproportionate impact of climate change on smallholder farmers, who are among the most vulnerable to its effects. Agriculture contributes approximately 24% of total global emissions, exacerbating climate change and global warming. Jain, in conversation with AgFunderNews, expressed a desire to interrupt this “vicious cycle” and foster a more virtuous one where farmers adopt sustainable practices that not only reduce emissions but also enhance soil health and productivity.
Varaha’s approach to achieving this involves acting as an “end-to-end project developer for carbon credits.” The company assists farmers in transitioning to climate-resilient farming techniques and employs advanced technology to validate these practices. Successful validation allows for the generation of carbon credits, which Varaha then sells to companies seeking to offset their carbon footprints. Its clientele includes Klimate in Denmark, Good Carbon in Germany, and Carbon Future in Switzerland, with growing interest from the United States.
The Varaha platform operates in three stages. Initially, it involves meticulous data collection from the field, which includes mapping farmers’ land, monitoring crops, and recording farming practices. Next, using a combination of remote sensing and machine learning models, Varaha verifies the implementation of these practices on the ground. Jain emphasizes that the ability to gather high-quality data seasonally and across various practices is what sets Varaha apart and allows for the refinement of their models.
Once practices are validated, Varaha quantifies the impact in terms of emissions reductions and carbon sequestration. Farmers receive a significant share of the carbon credit value, typically between 60% to 65%, with Varaha retaining 20% to 25%, and partners receiving the remaining 10% to 15%. Jain illustrates the potential earnings for farmers with an example from rice cultivation, where a farmer can earn roughly $100 in additional income from carbon credits per season.
Galina Chifina of RTP Global’s Asia team praised Varaha’s approach, calling it “unique” and a potential “game-changer for the industry.” Beyond generating carbon credits, Varaha’s mission includes creating systemic changes that enhance soil fertility, reduce input use, and ultimately lead to a 29% increase in farmers’ incomes. While there might be a temporary dip in yield during the initial years of adopting sustainable practices, Jain asserts that farmers profit from the start due to the additional income from carbon credits, and yields tend to increase over time as soil fertility is restored.
Varaha’s innovative model not only promises to help smallholder farmers in Asia and Africa transition to climate-friendly farming methods but also represents a transformative step towards a more sustainable and resilient agricultural sector globally.