French climate-focused investment firm Mirova, backed by Kering and other corporate giants, has invested $30.5 million (€26.4 million) in an Indian climate tech startup. VarahaThe investment will help expand the startup’s regenerative agriculture program, supporting thousands of smallholder farmers in northern India,
The deal is Mirova’s first carbon investment in India, but its structure is unusual. Instead of taking equity, the Paris-based firm is investing cash, and will receive a share of the carbon credits generated in return over time.
The arrangement is part of Mirova’s carbon investment strategy, which channels corporate capital into verified emissions-reduction projects. The firm is an affiliate of Natixis Investment Managers and its backers include Gucci parent company Kering, Orange, L’Occitane Group, Capgemini, Unibail-Rodamco-Westfield and Maine. These are all companies that want to offset supply-chain emissions through credible carbon initiatives.
Regenerative farming – the practice of restoring soil health and increasing biodiversity through methods such as crop rotation and reduced tillage – is gaining ground as a practical approach to making agriculture more resilient to climate change. In India, where millions of small farmers face declining soil fertility and irregular rainfall, the approach is as much about sustainability as it is survival.
Established in 2022, Varaha designs and operates carbon projects in regenerative agriculture, agroforestry and biochar. It works through a network of 48 local partners for field operations and its software monitors these projects in real time, reporting and verifying both climate and social outcomes.
Mirova is investing in Varaha’s farming project, which works with farmers in India’s Haryana and Punjab states to adopt low-emissions practices and generate verified carbon credits that can provide an additional source of income. As of now, the project covers an area of more than 200,000 hectares and with its expansion is expected to reach approximately 337,000 farmers across an area of 675,000 hectares.
Varaha’s approach is rooted in practices tailored to the cropping systems of India, especially in the country’s rice-growing belt. The startup focuses on direct sowing of rice and incorporating crop residues into the soil – an important alternative to the widespread practice of burning stalks after harvest, Madhur Jain, co-founder and CEO of Varaha, said in an interview.
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“Instead of burning the residue, you use farm machinery to cut it up in the field and mix it back into the soil,” he told TechCrunch.
The startup also promotes reduced tillage, reducing multiple tillage rounds to just one or two, which helps preserve soil carbon and improves the soil’s ability to store more over time.
The startup plans to use Mirova’s investment to help it purchase the machinery needed to implement regenerative practices.
“If you have to do direct sowing of rice instead of transplanting, which requires a lot of water, you will need thousands of direct sowings,” Jain said. “Because it is not a traditional practice yet, the number of seeders available in the market is much less than required. So you have to go to manufacturers and get them. Similarly, to incorporate crop residues, you need machines like Happy Seeders and Super Seeders.”
Credits generated under the program will be verified using Vera’s VM0042 methodology, with a revenue-sharing model designed to be delivered directly to participating farmers. The project is also seeking Climate, Community and Biodiversity (CCB) certification from Vera, a non-profit organization that recognizes land management projects that provide co-benefits for the environment, local communities and biodiversity.
While Vera is one of the leading organizations verifying carbon credits globally, it has faced criticism after an investigation suggested some of the projects it approved may have been fraudulent. Overstated your carbon savings,
Varaha still prefers to use Vera for his regenerative agriculture project because the non-profit is the only company that offers “the most advanced scientific methodology into soil carbon.” Jain said. However, he added that Varaha is not tied to any one registry and works with other major standards, including Puro and Isometric.
“On the soil organic carbon side, no one has yet questioned any of Vera’s credits,” he said.
In addition to cutting emissions, Varaha’s technology aims to improve soil health, reduce water use, limit chemical inputs, increase crop yields, reduce farming costs and contribute to cleaner air. The startup also plans to develop dedicated programs for women farmers, aiming to strengthen gender inclusion within rural communities.
Varaha’s worldwide reputation was helped by a deal it signed with Google earlier this year, which it described as the world’s largest biochar carbon removal deal. The tech giant will buy credits from startups to remove 100,000 tons of carbon dioxide by 2030.
Varaha’s investors include RTP Global, Omnivore, Orios Venture Partners, IMC Pan Asia Alliance Group’s Octave Wellbeing Economy Fund and Japan’s Norinchukin Bank. The startup has raised $12.7 million in venture funding so far, including $8.7 million from a Series A round last year.
