Brazilian reforestation firm Mombak raises $30 million in funding led by Union Square Ventures, aimed at scaling operations in carbon removal. The company restores degraded land to rainforest, selling carbon credits to offset emissions. Mombak plans to plant 8 million trees by June and has secured significant contracts with major companies.
Mombak, a reforestation startup based in Brazil, successfully raised $30 million in a funding round led by Union Square Ventures (USV), announced on Tuesday. This funding reflects the heightening investor interest in Brazil’s burgeoning carbon removal sector. The company specializes in restoring degraded pastures and farmland using native Amazon rainforest species, subsequently selling carbon credits to businesses aiming to offset their greenhouse gas emissions.
In addition to USV, the Series A funding round saw the participation of existing backers, including Kaszek, Bain Capital, and AXA-controlled AXA IM Alts. New investors like Lowercarbon Capital and Copa Investimentos also joined in, showcasing a robust commitment to Mombak’s vision. The financial boost will aid Mombak in scaling its operations, as the company has already planted 5 million native trees across 45,000 acres, an area three times larger than Manhattan.
The startup has set an ambitious target to increase the total number of planted trees to 8 million by June. Co-founder Gabriel Silva shared with Reuters, “We are moving from startup to scale-up. We decided it was time to have a new capital round to invest in this new phase: taking our initial business and doing it in a much larger scale.”
This fundraising indicates a growing trend in Brazil’s carbon removal landscape, joined by other startups like Biomas and re.green, backed by influential figures such as billionaire Joao Moreira Salles, who have recently initiated significant projects. Notably, heavyweight companies including Google, Microsoft, Meta, and McLaren Racing have entered agreements to procure carbon credits from Brazilian initiatives.
Mombak has already secured $150 million worth of carbon removal offtake contracts, with expectations that this figure could quadruple in the current year. Since its establishment in 2021, the startup has drawn in approximately $200 million in total investments. Andy Weissman, managing partner at USV, stated, “We believe that carbon removal will be one of the defining industries of the 21st century. We’re proud to support Mombak’s mission to turn the Amazon into a global engine for climate restoration.”
In summary, Mombak’s impressive funding round led by USV highlights the rising interest in Brazil’s carbon removal sector. Engaging existing investors as well as new ones, the company is poised for significant growth in its sustainability efforts. With ambitious planting goals and a considerable market for carbon credits, Mombak aims to play a pivotal role in global climate restoration, drawing further support from major corporations. This advancement reflects a critical moment for both Mombak and Brazil’s environmental initiatives.
Original Source: www.marketscreener.com
