Mirova, a French climate-focused investment firm supported by corporate giants like Kering, has made a significant investment of $30.5 million (€26.4 million) in Varaha, an Indian climate tech startup. This investment aims to expand Varaha’s regenerative farming program, which will benefit hundreds of thousands of smallholder farmers in northern India.

This investment represents Mirova’s first foray into carbon investment in India, with a unique structure. Rather than acquiring equity, the Paris-based firm is providing cash and will receive a portion of the carbon credits generated over time in return.

Mirova’s carbon investment strategy focuses on directing corporate capital into verified emissions-reduction projects. Backed by companies like Kering, Orange, and L’Occitane Group, Mirova aims to offset supply-chain emissions through credible carbon initiatives.

Regenerative farming, which involves restoring soil health and enhancing biodiversity through practices like crop rotation and reduced tillage, is gaining popularity as a practical approach to make agriculture more resilient to climate change. In India, where many small farmers are grappling with declining soil fertility and unpredictable rainfall, regenerative farming is essential for both survival and sustainability.

Varaha, founded in 2022, specializes in designing and implementing carbon projects across regenerative agriculture, agroforestry, and biochar. The startup collaborates with 48 local partners to execute field operations, while its software monitors projects in real-time to report and verify climate and social outcomes.

The focus of Mirova’s investment is Varaha’s Kheti project, which aims to assist farmers in Haryana and Punjab adopt low-emission practices and generate verified carbon credits as an additional income source. The project currently covers over 200,000 hectares and is expected to benefit around 337,000 farmers across 675,000 hectares as it expands.

Varaha’s approach is tailored to India’s cropping systems, particularly in the rice-growing regions. The startup emphasizes practices like direct seeding of rice and incorporating crop residue into the soil, offering alternatives to the conventional practice of burning stubble after harvest.

The startup plans to utilize Mirova’s investment to acquire the necessary machinery to implement regenerative practices effectively.

Varaha’s carbon credits generated will undergo verification using Verra’s VM0042 methodology, with a revenue-sharing model aimed at directly benefiting participating farmers. The project is also pursuing Climate, Community & Biodiversity (CCB) certification from Verra, recognizing projects that offer environmental, community, and biodiversity co-benefits.

Despite some criticism faced by Verra, Varaha remains committed to using its methodology for the regenerative farming project due to its advanced scientific approach to soil carbon. Additionally, Varaha collaborates with other leading standards like Puro and Isometric.

Varaha’s tech not only reduces emissions but also improves soil health, conserves water, reduces chemical inputs, boosts crop yields, reduces farming costs, and contributes to cleaner air. The startup plans to develop specific programs for women farmers to enhance gender inclusion in rural communities.

Varaha gained global recognition through a substantial agreement with Google, securing the world’s largest biochar carbon removal deal. Google will purchase 100,000 tons of carbon dioxide removal credits from Varaha by 2030.

Investors in Varaha include RTP Global, Omnivore, and Orios Venture Partners, among others. The startup has raised $12.7 million in venture funding to date, including $8.7 million from a Series A round last year.