Mirova invests $30M in Varaha’s Kheti soil carbon project

Mirova, a French investment firm focused on climate solutions and backed by companies like Kering, has invested $30.5 million (€26.4 million) in the Indian startup Varaha.

The investment combines project financing and an offtake agreement, allowing Varaha to expand its Kheti soil project tenfold, reaching 337,000 smallholder farmers in Haryana and Punjab over the next four years. Currently, the company works with 25,000 farmers.

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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 also one of the few companies in the climate-tech space to have achieved profitability, reaching this milestone in FY25. “This gives us a huge boost as a company in order to not be reliant on equity fundraising,” Janzen said.

The Kheti project aims to promote regenerative farming practices like direct seeding of rice, crop residue management, and reduced tillage. These practices are expected to generate carbon credits, with a revenue-sharing model that ensures farmers also benefit from the sale of credits under the Vera VM0042 methodology.

Verra is a non-profit organization that sets standards for climate action and sustainable development. Its VM0042 methodology provides a framework to measure greenhouse gas (GHG) emission reductions and carbon dioxide removals from adopting sustainable agricultural practices.

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