Indian Startup Varaha Helps Farmers Turn Sustainable Practices into Lucrative Carbon Credits

Varaha, an Indian agritech startup, is empowering smallholder farmers across India and other Asian and African countries to adopt climate-friendly farming techniques and earn income through carbon credits.

The voluntary carbon credit market is projected to boom from $2 billion in 2020 to $250 billion in 2050. However, complexities around quantifying emission reductions have so far restricted small farmers from tapping into this opportunity.

Varaha offers an end-to-end solution, working with over 100 partners to onboard farmers onto emission-reducing practices like water conservation in rice cultivation. The startup then leverages remote sensing and machine learning to precisely measure resulting carbon sequestration and greenhouse gas emission reductions.

This data allows Varaha to generate certified nature-based carbon credits. The credits are sold predominantly to sustainability-focused companies in Europe, generating additional revenue for farmers.

“We are enabling smallholder farmers to earn climate-smart income while meeting the growing corporate demand for high-quality, nature-based carbon credits,” said Varaha co-founder Madhur Jain.

Unlike credits from renewable energy projects, quantifying nature-based credits requires rigorous third-party auditing. Varaha subjects its measurement practices to meticulous verification, producing credits that can be sold globally.

Varaha will expand into 5-6 new countries with its recently closed $8.7 million Series A funding. The round signals investor confidence in Varaha’s ability to overcome complexities in quantifying carbon reduction from small farms.

The startup aims to catalyze climate action among smallholder farmers across Asia and Africa. As Madhur Jain aptly puts it, “We are coming full circle in terms of identifying a problem much before and now finding a solution.”