Equilibrium Climatetech Carbon Removal Funding Reaches $3 Million Expansion

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A quiet revolution is stirring in India’s climate-tech landscape, and Equilibrium climatetech carbon removal funding is driving the change through this Bengaluru-based startup. In September 2025, it secured US$3 million in seed funding from Kalaari Capital, Peak XV Partners, and Avaana Capital. But this isn’t just about money, it’s a vote of confidence in a bold, ambitious vision: blending environmental restoration with tangible economic uplift for farming communities.

The new funding will supercharge a multi-pronged carbon removal strategy: agroforestry, regenerative agriculture, mangrove restoration, and biochar innovation. Equilibrium currently manages eight projects across nine states, covering 120,000 hectares and impacting 150,000 smallholder farmers. Their aim? To remove more than 20 million tonnes of CO₂ over the coming years, a scale rarely attempted by Indian early-stage ventures.

Founded in 2024 by Siddhanth Jayaram, Equilibrium’s mission is dual: create scientifically verifiable carbon removal pathways while boosting farmer livelihoods. With digital MRV (Measurement, Reporting, and Verification) systems and robust carbon accounting, every carbon credit is backed by real-world impact. Through collaborations with FPOs, NGOs, and other stakeholders, Equilibrium is transforming carbon removal from a niche concept into a scalable, livelihood-enhancing enterprise.

The timing couldn’t be more critical. In 2024, India’s climate-tech sector attracted around US$1.5 billion, making up 10% of total VC inflows, a clear sign that investors are paying attention. Simultaneously, formalization of the Indian Carbon Market (ICM) and the Carbon Credit Trading Scheme (CCTS) is establishing structured frameworks for registration, verification, and offsets—a perfect tailwind for Equilibrium’s next phase of growth.

1. Introduction: Founding Roots and Equilibrium’s Mission

1.1 Why Equilibrium Was Founded

Siddhanth Jayaram didn’t start in a boardroom. He wandered through the mangrove-clad villages of Tamil Nadu, witnessing communities struggling under the weight of environmental neglect. Fields lay scarred from repeated stubble burning, soil was washing away with every monsoon, and crop yields were dwindling year after year. Families seemed trapped in an unending loop of poverty, degradation, and sheer uncertainty about the future.

“You can read reports, statistics, and endless studies on climate change—but nothing prepares you for a farmer telling you they don’t know if their family will survive the next storm,” Siddhanth recalls, his voice tinged with urgency. That moment—the stark, human reality of climate vulnerability became the lifeblood of Equilibrium: a mission to remove carbon, rejuvenate fragile ecosystems, and lift farmer incomes simultaneously. It wasn’t a concept drawn on paper—it was born from witnessing hardship firsthand, raw and unfiltered.

This isn’t just a PR-friendly origin story. It’s a narrative grounded in reality, resonating with investors, partners, and the communities it serves.

1.2 What Equilibrium Does

Equilibrium avoids empty jargon. It delivers full-stack climate-tech solutions, grounded in science and field-tested results. Its core pillars include:

• Agroforestry & Regenerative Agriculture: Trees, cover crops, and compost are integrated into daily farming, improving soil, capturing carbon, and increasing resilience.
• Mangrove Restoration: Mangroves act as natural shields against cyclones and rising seas, storing carbon while safeguarding coastal communities.
• Biochar & Waste-to-Value Conversion: Crop residues, stubble, and invasive plants are converted into biochar, locking carbon for decades and enhancing soil fertility.
• Digital MRV (Measurement, Reporting & Verification): Satellite imagery, sensors, and rigorous audits ensure carbon credits are credible and trustworthy.

Through partnerships with FPOs, NGOs, and corporates, Equilibrium ensures measurable impact while generating new income streams for farmers via biochar and other climate-positive products.

2. Equilibrium Climatetech Carbon Removal Funding: What It Covers

2.1 The Seed Round Details

• Amount: US$3 million
• Investors: Kalaari Capital, Peak XV Partners, Avaana Capital
• Planned Use: Scale existing projects, enhance the MRV platform, expand operational capacity, and explore South Asia expansion (Nepal, Sri Lanka) in the next 2–3 quarters

2.2 Growth Trajectory & Prior Financing

Before this round, Equilibrium had raised US$2 million through blended finance, supported by philanthropic and carbon-focused investors. That earlier funding targeted emissions reductions in paddy and maize supply chains, impacting over 10,000 farmers.

Now, with fresh capital, the scale jumps dramatically: 150,000+ farmers, 120,000 hectares, and more than 20 million tonnes of CO₂ removal. These aren’t just numbers, they signal investor trust in a model that unites science, technology, and social impact.

3. Solving Critical Problems in India

3.1 Agriculture and Climate Intersect

Indian agriculture is at a tipping point: soil erosion, nutrient depletion, erratic monsoons, and pest outbreaks threaten livelihoods. Equilibrium’s regenerative interventions offer more than environmental benefits, they provide economic lifelines. Farmers reduce dependence on chemical fertilizers, restore soil health, and generate income from carbon credits and biochar sales.

3.2 Coastal Vulnerabilities and Mangrove Loss

Coastal communities in Tamil Nadu, Andhra Pradesh, West Bengal, and Odisha face storm surges, rising seas, and erosion annually. Mangrove restoration is not just carbon sequestration, it’s about protecting homes, livelihoods, and biodiversity.

3.3 Waste Management and Pollution

Stubble burning contributes heavily to India’s winter air pollution. Equilibrium converts this waste into biochar, simultaneously mitigating pollution and creating economic value a rare dual win.

3.4 Carbon Accountability & Demand for Credible Removal

Corporates chasing net-zero need carbon credits that are verifiable, permanent, and scientifically robust. Equilibrium’s digital MRV system and transparent farmer partnerships provide the credibility necessary to stand out in a market crowded with greenwashing.

4. Revenue & Business Model

4.1 Revenue Streams

• Carbon Removal Units / Credits: Corporates seeking credible offsets.
• Biochar Products / Soil Amendments: Sold to farmers and businesses to enhance soil.
• Grants / Blended Finance: Philanthropy reduces early-stage risk.
• Partnerships & Shared Value: FPOs, NGOs, and corporates share costs, risks, and rewards.

4.2 Cost Structure & Investment Needs

Scaling is complex. Doubling hectares means doubling monitoring, field teams, logistics, biochar processing, planting, and mangrove maintenance. Seed funding bridges operational gaps, enabling growth without sacrificing quality.

5. Industry & Market Context

5.1 Climate Tech Funding Trends in India

In 2024, climate-tech startups raised US$1.5 billion, 10% of total VC inflows. India hosts over 3,000 climate-tech startups, with 800+ focused on mitigation, adaptation, and resilience, a sign of a maturing, opportunity-rich ecosystem.

5.2 Carbon Credit Market Size & Policy Landscape

India’s CCTS under ICM brings rigor to carbon trading. By 2030, demand could reach 180 million tonnes CO₂e, worth roughly ₹45,000 crore annually at ₹250 per tonne. Voluntary offsets could add another 50 MtCO₂e annually. Early policy alignment is key for scaling.

5.3 Global Carbon Credit Market Forecasts

Globally, the market is expected to grow from USD 6.34 billion (2023) to USD 15.33 billion (2029), at a 16% CAGR. India’s smallholder agriculture, biodiversity, and policy support position it strategically.

6. Competitor/Peer Landscape

6.1 Notable Players

• Varaha ClimateAg: Biochar-focused; Google purchases credits.
• Alt Carbon: Uses enhanced rock weathering; raised US$12 million.

6.2 How Equilibrium Stands Out

• Multi-pathway Approach: Agroforestry, mangroves, biochar diversify risks.
• Scale: 150,000 farmers, 120,000 hectares across nine states.
• Digital MRV: Ensures credibility, giving Equilibrium an edge in verification-driven markets.

7. Founder Vision & Future Roadmap

Siddhanth Jayaram stresses that carbon removal is about soil, people, and ecosystems—not just numbers. Plans include enhancing MRV tech, expanding across states, and piloting in Nepal and Sri Lanka. “We aim for solutions that last—impacting soil, climate, and the communities who rely on it,” he says.

8. Benchmarking Equilibrium vs Peers

Metric	Equilibrium	Alt Carbon	Varaha / Others
Funding Size	US$3M (seed)	US$12M (seed)	Smaller / corporate offtake
Primary Pathways	Agroforestry, Mangrove, Biochar	Enhanced rock weathering	Biochar / waste-to-value
Scale (Farmers / Land)	150,000 / 120,000 ha	Target 500,000 ha by 2030	~100,000 tons via agreements
Verification & Credibility	Digital MRV + field audits + multi-partner	Mineral science pilots	Focus on biochar; limited transparency

Even with smaller funding, Equilibrium’s credible, multi-pathway model gives it practical advantages in impact, farmer engagement, and market trust.

9. Learning for Startups and Entrepreneurs

• Solve real problems on the ground: Farmer pain points drive scalable solutions.
• Build measurement credibility early: Digital MRV and audits win trust.
• Diversify carbon pathways: Hedge against ecological and market risks.
• Leverage blended finance: Philanthropy reduces early-stage risk.
• Anticipate policy shifts: Align with evolving schemes (CCTS, voluntary markets) for smoother scaling.

About Foundlanes

At Foundlanes, stories like Equilibrium’s define India’s next decade of innovation. Climate tech, biochar, mangroves, carbon removal, these aren’t buzzwords. They’re mission-critical solutions shaping the future. We report them to inform, inspire, and empower founders, investors, and climate-conscious businesses to act.