Mombak, a Brazilian reforestation startup, secured $30 million in funding led by Union Square Ventures. The company restores degraded land to Amazon rainforest and sells carbon credits to offset emissions. Aiming for broader operations, Mombak plans to plant 8 million trees by June. This funding underscores investor interest in Brazil’s carbon removal industry.
Mombak, a reforestation startup based in Brazil, has raised $30 million in a funding round led by Union Square Ventures (USV). This funding comes as interest surges in Brazil’s carbon removal sector. The company is focused on restoring degraded farmland and pastures back into Amazon rainforest, planting native species and selling carbon credits to businesses aiming to offset their emissions voluntarily.
The Series A fundraising, announced on Tuesday, also included contributions from returning investors like Kaszek, Bain Capital, and AXA-controlled AXA IM Alts. New investors Lowercarbon Capital and Copa Investimentos took part in this round as well. Mombak plans to use the funds primarily to boost its operations, as it aims to expand its tree-planting efforts.
Currently, Mombak manages to grow 5 million native trees over 45,000 acres – a space that is actually three times larger than Manhattan. The startup has set an ambitious target to plant an additional 3 million trees for a total of 8 million by June. Gabriel Silva, co-founder of Mombak, noted to 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 round of funding reflects the increasing momentum within Brazil’s carbon removal industry. Other new players are also entering the market, such as Biomas, backed by blue-chip investors, and re.green, supported by billionaire Joao Moreira Salles, who have launched notable projects in recent times.
Major firms like Alphabet’s Google, Microsoft, Meta (formerly Facebook), and McLaren Racing have all engaged with Brazilian carbon credit projects. Mombak has secured $150 million in carbon removal contracts and anticipates the volume could grow up to four times within the year. To date, they have raised about $200 million in total investments since being established in 2021.
Andy Weissman, managing partner at USV, conveyed confidence in the sector, 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.”
In summary, Mombak’s recent $30 million funding round led by USV highlights the vibrant growth of Brazil’s carbon removal sector. The startup is ramping up its operations significantly following the investment, with the ambitious goal of planting 8 million trees by June. Interest from major corporations and support from notable investors illustrate the increasing importance of reforestation efforts in combating climate change.
Original Source: www.marketscreener.com
