WestBridge Capital Makes Strategic Climate Tech Debut with Varaha Investment
In a significant move signaling growing investor confidence in climate technology, WestBridge Capital has announced its inaugural investment in the climate tech sector. The US- and India-focused investment firm has led a substantial $20 million Series B funding round for Gurugram-based carbon removal company Varaha, with plans to inject an additional $25 million in a second tranche.
Major Funding Injection for Carbon Removal Pioneer
Sandeep Singhal, co-founder and managing partner at WestBridge Capital, revealed that the firm is committing a total of $45 million to Varaha through this investment round. This substantial capital infusion will provide WestBridge with approximately 20% ownership stake in the carbon removal company, marking a strategic diversification beyond the firm's traditional investment sectors.
"We have been closely monitoring developments in the broad climate change arena and evaluating potential opportunities within this thesis," Singhal explained in an exclusive interview. "Discovering Varaha was particularly fortuitous - we encountered a company that not only demonstrates impressive maturity but also aligns perfectly with our for-profit business criteria."
Varaha's Impressive Growth Trajectory and Global Reach
Varaha has established itself as a formidable player in the carbon removal space, developing high-integrity projects across multiple technologies:
- Biochar production and implementation
- Afforestation, Reforestation and Revegetation (ARR) initiatives
- Regenerative agriculture practices
- Enhanced Rock Weathering (ERW) technologies
The company's financial performance has been equally impressive, with a contracted revenue projection of $100 million anticipated over the next two to three years. Varaha has demonstrated remarkable growth, nearly doubling its size annually while approaching profitability.
Expanding Geographic Footprint and Scientific Capabilities
The newly acquired funding will accelerate Varaha's expansion across multiple fronts. The company plans to:
- Extend its geographic presence into new regions
- Strengthen scientific research and Measurement, Reporting, and Verification (MRV) capabilities
- Scale an innovative industrial partnership model to collaborate with partners worldwide
Varaha has already enrolled over 283,280 hectares across India, Bangladesh, Nepal, and Kenya. The company collaborates with more than 100 partners in these regions to onboard smallholder farmers, with ambitious plans to quadruple this network within the next 12 to 15 months.
Market Position and Carbon Credit Success
Singhal emphasized Varaha's exceptional market position, stating, "The carbon credit market appears poised for significant expansion. Remarkably, we've identified a company based in India that ranks among the top three global players in this space."
Varaha has already contracted and sold more than 230,000 carbon credits through its diversified project portfolio. The company serves prestigious international clients including Klimate in Denmark, Good Carbon in Germany, Carbon Future in Switzerland, and various top-tier European corporations. Significant interest has also emerged from financial institutions and technology companies across the United Kingdom and United States.
WestBridge's Strategic Shift Toward Sustainability
This investment represents a strategic pivot for WestBridge Capital, which has traditionally focused on sectors such as fintech, consumer technology, and SaaS AI. The firm now identifies substantial investment potential in sustainability-focused areas including energy transition, data centers, and agricultural practices.
"Humanity faces a crisis of unprecedented magnitude," Singhal noted regarding climate change. "While geopolitical factors have caused temporary slowdowns, activity in this sector has been intensifying. Across all sectors of society, there's a growing commitment to sustainability and climate action."
WestBridge Capital brings considerable experience to this new venture, having participated in 79 funding rounds over the past five years, deploying more than $2 billion in India. The firm's portfolio includes successful investments in companies such as Meesho, Physicswallah, Rapido, and numerous other emerging enterprises.
Singhal confirmed the firm's continued commitment to the Indian market, stating, "We're intensifying our focus on existing businesses while expanding our ownership positions. WestBridge remains dedicated to maintaining our investment momentum in India."
This landmark investment signals growing recognition among major investment firms that climate technology represents not just an environmental imperative but a substantial commercial opportunity with potential for multifold returns in the coming decade.
