Mombak, a Brazilian reforestation startup, secured $30 million in funding led by Union Square Ventures. The company aims to restore degraded land and has planted five million trees, targeting eight million by June. Participating investors include Kaszek and Bain Capital, reflecting a rising interest in Brazil’s carbon removal industry. Mombak’s growth demonstrates the potential of carbon capture initiatives.
Mombak, a Brazilian reforestation startup, has recently announced that it has raised $30 million in a funding round led by Union Square Ventures (USV). This investment illustrates the growing interest among investors in Brazil’s carbon removal sector. Mombak focuses on restoring degraded farm and pasture lands back to Amazon rainforest by using native species and sells carbon credits to businesses aiming to offset their greenhouse gas emissions voluntarily.
The new Series A round also included participation from existing investors such as Kaszek, Bain Capital, and AXA-controlled AXA IM Alts, along with new contributors like Lowercarbon Capital and Copa Investimentos. The funds will primarily bolster Mombak’s operations, which have thus far successfully led to the planting of five million native trees across 45,000 acres—an area three times larger than Manhattan. The company’s target is to reach the milestone of eight million trees planted by June.
Mombak co-founder Gabriel Silva indicated that the firm is transitioning from a startup to a scalable operation. “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,” he told reporters. This round of financing is just the latest development within Brazil’s burgeoning carbon removal industry, a field gaining traction with several startups like Biomas and re.green launching major initiatives recently.
High-profile companies including Google, Microsoft, Meta, and McLaren Racing have all made agreements to purchase carbon credits generated by Brazilian projects. Mombak has signed $150 million in carbon removal offtake contracts and anticipates that this figure could multiply by four this year, further solidifying its position in the market. The startup has brought in approximately $200 million in investments since its inception in 2021.
USV’s managing partner Andy Weissman emphasized the significance of Mombak’s work, 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.”
Overall, Mombak’s fundraising efforts underscore a strong commitment from investors to innovative solutions in carbon capture and reforestation, indicating optimism for the future of Brazil’s environmental initiatives and business potential in the realm of climate change solutions.
In conclusion, Mombak’s recent $30 million funding round led by Union Square Ventures highlights a significant investment in Brazil’s reforestation and carbon removal sector. As the company aims to scale up operations and enhance its tree-planting initiatives, the participation of major investors reflects a growing acknowledgment of the importance of carbon credits. With partnerships formed with prominent corporations and ambitious plans ahead, Mombak is positioned to play an increasingly influential role in climate restoration efforts.
Original Source: www.marketscreener.com
