Brazilian Reforestation Startup Mombak Secures $30 Million in Funding
Brazilian startup Mombak has raised $30 million in a funding round led by USV, marking a pivotal moment for the carbon removal industry in Brazil. The company focuses on restoring degraded farmland while offering carbon credits to companies to offset emissions, aiming for significant growth with plans to plant 8 million trees by June. Notable investors include Kaszek, Bain Capital, and new investors like Lowercarbon Capital.
Mombak, a reforestation startup hailing from Brazil, has successfully raised $30 million in a significant funding round led by Union Square Ventures (USV). This development highlights increasing investor interest in Brazil’s emerging carbon removal sector, as more firms strive for sustainability. The announcement was made on a Tuesday, underscoring momentum in environmental efforts.
Specializing in restoring degraded farmland and pasture land back into vibrant Amazon rainforest, Mombak utilizes native species and sells carbon credits to companies aiming to offset their greenhouse gas emissions. The company’s Series A funding round also welcomed contributions from established investors such as Kaszek, Bain Capital and AXA IM Alts, alongside newcomers Lowercarbon Capital and Copa Investimentos.
The funding will largely facilitate Mombak’s expansion efforts. So far, the company has successfully planted 5 million native trees across 45,000 acres. This area is notably three times the size of Manhattan, and the goal is to plant an additional 3 million trees by June, bringing the total to 8 million.
Gabriel Silva, co-founder of Mombak, emphasized the growth trajectory, stating, “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 recent capital raise reflects the broader trend of escalating activities within Brazil’s carbon removal industry. There are various startups, including Biomas, founded by a blue-chip company, and re.green, backed by billionaire Joao Moreira Salles, that have initiated major projects recently.
Notable technology and automotive firms, like Google, Microsoft, Meta, and McLaren Racing, have also shown interest, signing agreements to procure carbon credits from Brazilian enterprises. Mombak has inked contracts worth $150 million relative to carbon removal and is optimistic about scaling that volume up to fourfold within this year.
Since its inception in 2021, Mombak has amassed approximately $200 million in investments, evidencing its growing influence in the sector. Andy Weissman, a managing partner at USV, expressed strong belief in the future of carbon removal, stating, “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.”
The recent $30 million funding secured by Mombak not only positions the startup for significant growth but also highlights the burgeoning interest in carbon removal initiatives in Brazil. With ambitious goals to increase tree planting and a commitment to restoring the Amazon rainforest, Mombak is poised to play a critical role in sustainability. The involvement of large tech firms reinforces the importance of carbon credits, which are steadily becoming a vital aspect of corporate responsibility in combating climate change.
Original Source: www.marketscreener.com
