"Can spreading rock dust on farms save the planet, and build a billion-dollar business?"
How a deep-tech startup raised India's largest climate tech seed round ($12M) to make South Asia a hub for Carbon Dioxide Removal.
Lead Investor: Lachy Groom
May 2025 • VC FRAMEWORK
The IPCC says reducing emissions alone won't limit warming to 1.5°C. We also need to actively remove historic CO₂, at gigaton scale. Here's why current solutions fall short.
IPCC requires 10 GT of CO₂ removed annually by 2050. Current capacity: less than 0.01 GT. A 1000x gap.
Direct Air Capture costs $400-1000/ton. Enhanced Rock Weathering can achieve removal at $50-150/ton, up to 10x cheaper.
India needs $1 trillion in climate finance by 2030 alone. The Global South is massively underserved in carbon removal infrastructure.
Trees store carbon for decades, but fires and deforestation release it back. ERW stores CO₂ as rock for 10,000+ years.
Nature's own carbon removal, accelerated by science
How it works: Waste basalt rock dust is spread on agricultural fields. When rainwater (containing CO₂) interacts with the rock, a chemical reaction converts CO₂ into stable bicarbonate ions stored in soil for 10,000+ years. The rock also improves soil health and crop yields. A win-win.
Founder Insight
"Extraordinary crises require outsized ambition. We're building the scientific backbone of a new era of climate action grounded in the Global South."
– Shrey Agarwal, Co-founder & CEO, Alt Carbon
10,000+
Years CO₂ stored
60,000
Acres onboarded
10x
Cheaper than DAC
5M MT
CO₂ removal target by 2030
$1.2 Trillion
Global Carbon Removal Market (by 2050)
$100B+
Enhanced Rock Weathering Market
$500M+
South Asia CDR (Alt Carbon's Target)
Corporates like Microsoft, Stripe, Google are pre-purchasing carbon removal credits at premium prices.
EU's Carbon Border Adjustment Mechanism and India's upcoming carbon market will drive massive demand.
India's tropical climate accelerates rock weathering. Lower labor costs = lower cost per ton of CO₂ removed.
Stripe, Alphabet, Meta, Shopify, McKinsey committed $1B to buy permanent carbon removal. Alt Carbon is selected.
Market Tailwind
CDR demand growing at 40%+ CAGR globally
A deep-tech platform combining Earth Sciences R&D, agricultural infrastructure, and carbon credit monetization.
Waste rock dust from mines, turning industrial waste into climate solution.
Rock dust applied to agricultural land. Improves soil + captures CO₂.
Proprietary lab + models quantify CO₂ removed. Third-party verified credits.
Premium carbon removal credits sold to corporates like Frontier, Mitsubishi, MOL Group.
Measurement, Reporting & Verification models trained on Indian soil/climate data
Advanced Earth Sciences R&D lab for rock characterization and soil analysis
60,000+ acres onboarded. More data = better models = more accurate credits
Premium carbon removal credits with long-term offtake agreements from global corporates.
Per ton of CO₂ removed, verified carbon removal credits sold to corporates
Buyers include Frontier (Stripe/Google), Mitsubishi, MOL Group
MOL Group signed world's first ERW offtake deal with a shipping company
Long-term contracts = revenue predictability + de-risked business
Agricultural data & soil analytics platform for farmers and institutions
Network effect: more land = better science = higher credit quality
Premium CDR Credits
High-value offtake deals with global corporates at premium pricing
Volume + Compliance
Scale to millions of acres. Enter compliance carbon markets (EU CBAM)
Agri-Climate Platform
Data platform for soil health, carbon analytics, and precision agriculture
How Alt Carbon stacks up against other carbon removal approaches and ERW players.
Energy-intensive, expensive, limited scalability in near-term
Good for soil but permanence questions. Needs biomass feedstock.
Promising but regulatory challenges and environmental impact concerns.
Cost-effective, scalable, co-benefits for agriculture, 10,000+ year permanence
US-focused. Strong MRV but operates in temperate climate (slower weathering).
UK-based. Pioneer in ERW but limited to temperate regions.
US Midwest focus. Good distribution but lacks tropical advantage.
From a struggling Darjeeling tea estate to a $12M deep-tech climate venture.
Started from a family tea estate in Darjeeling. Built first ERW lab and ran initial field trials on tea plantations.
First Indian company selected by Stripe/Google/Meta's $1B carbon removal commitment. Also signed deals with NextGen (South Pole + Mitsubishi).
Strategic partnership with Mitsubishi Corp. MOL Group signs 10,000 ton offtake, the world's first ERW deal by a shipping company.
Led by Lachy Groom (investor in OpenAI, Zepto, Anduril). India's largest climate tech seed round. 60,000+ acres onboarded.
Lead Investor, backed OpenAI, Zepto, Anduril, Ramp
$1B Advance Market Commitment buyer
Strategic partner for scaling ERW in South Asia
Early-stage investors + venture philanthropy
Total Raised
$12 Million (Seed)
Largest climate tech seed round in India, backed by the investor behind OpenAI & Zepto
Why investors see Alt Carbon as a category-defining climate tech company.
First major ERW company in the Global South. Creating the carbon removal infrastructure category in India, a massive first-mover advantage.
India's tropical climate = faster weathering. Lower labor costs. Abundant basalt waste. Result: lowest cost per ton of CDR globally.
Pre-purchase agreements from Frontier (Stripe/Google/Meta), Mitsubishi, MOL Group. Demand de-risked before scaling supply.
Proprietary lab, MRV models, and soil data create compounding scientific advantage. Not easily replicated by new entrants.
$12M
Seed Round
60K+
Acres
Frontier
Selected
3
Global Offtakes
Every climate tech investment carries unique risks. Here's what investors considered.
Accurately measuring how much CO₂ is removed via ERW is still evolving. Credits depend on precise measurement.
Carbon credit prices fluctuate. Policy changes could impact voluntary market demand or pricing.
Convincing farmers to adopt rock dust application requires education and trust-building at scale.
Lithos ($75M raised) and others could expand to tropical regions and compete on India's turf.
Deep-tech companies need time to build science, infrastructure, and scale. Revenue growth may lag funding rounds.
Key investment principles this deal illustrates.
Alt Carbon's proprietary lab, MRV models, and soil data create a compounding advantage that can't be replicated by throwing money at the problem.
Securing offtake agreements from Frontier, Mitsubishi, and MOL before scaling operations is a masterclass in demand-side de-risking.
India's tropical climate + low costs = structural advantage over Western ERW players. VCs love unit economics moats driven by geography.
Farmers get better soil, corporates get verified credits, the planet gets CO₂ removed. Businesses that create value for all stakeholders are more defensible.
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