Mirova, the climate investment arm backed by luxury giant Kering, just dropped $30.5 million into Indian agtech startup Varaha in a deal that could reshape how carbon credits work in agriculture. The investment - structured as a revenue-share on carbon credits rather than traditional equity - will help Varaha scale regenerative farming practices across 675,000 hectares in northern India, supporting over 337,000 smallholder farmers.
Mirova, the Paris-based climate investment firm backed by Kering and other corporate heavyweights, just made its first carbon investment in India - and it's not your typical funding round. The $30.5 million deal with agtech startup Varaha skips equity entirely, instead giving Mirova a share of carbon credits generated over time. It's a bet that regenerative farming can deliver both climate impact and financial returns at massive scale.
The timing couldn't be more critical. India's agricultural sector is facing a perfect storm of declining soil fertility, erratic rainfall, and widespread stubble burning that chokes Delhi's air quality every winter. Varaha's solution tackles all three problems through its Kheti project, which works with farmers in Haryana and Punjab to adopt low-emission practices that generate verified carbon credits.
"Instead of burning the residue, you use agricultural machinery to cut it on the farm and mix it back into the soil," Varaha co-founder and CEO Madhur Jain told TechCrunch. The startup focuses on direct seeding of rice and incorporating crop residue - a crucial alternative to the widespread practice of burning stubble after harvest that contributes to northern India's air pollution crisis.
Founded in 2022, Varaha has already built impressive momentum. The startup operates through a network of 48 local partners, with software that monitors projects in real-time and verifies both climate and social outcomes. Current operations cover over 200,000 hectares, but Mirova's investment will help scale that to 675,000 hectares reaching 337,000 farmers.
The revenue structure reflects a broader shift in climate investing. Rather than traditional venture capital, Mirova - an affiliate of Natixis Investment Managers - channels corporate capital into verified emissions-reduction projects. The firm's backers include Gucci parent , Orange, L'Occitane Group, Capgemini, and others seeking credible carbon offsets for their supply chains.
