Brazil’s Mombak Secures $30 Million in Funding to Boost Reforestation Efforts

Mombak, a Brazilian reforestation startup, has secured $30 million in funding from Union Square Ventures and other investors. The funds will help expand operations as Mombak aims to plant 8 million trees by June. This announcement highlights the increasing investment interest in the carbon removal industry in Brazil, with major corporations also looking to purchase carbon credits.

Brazilian reforestation startup Mombak announced on Tuesday that it has successfully raised $30 million in a funding round spearheaded by Union Square Ventures (USV). This investment underscores the increasing interest of investors in Brazil’s burgeoning carbon removal sector. Mombak specializes in restoring degraded agricultural lands, converting them back into lush Amazon rainforest through the planting of native species.

The latest Series A funding round saw participation not just from USV, but also from returning investors like Kaszek, Bain Capital and AXA-controlled AXA IM Alts. New participants in this round include Lowercarbon Capital and Copa Investimentos. Mombak will primarily utilize these funds to expand its business operations, which have already seen the establishment of 5 million trees across 45,000 acres—an area that is three times larger than Manhattan—with an ambitious goal of reaching 8 million planted trees by June.

Gabriel Silva, co-founder of Mombak, expressed the startup’s commitment to scaling its operations. “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 on a much larger scale,” he stated.

This recent funding for Mombak highlights the growing momentum behind Brazil’s carbon removal industry. Other startups like Biomas, backed by blue-chip investors, and re.green, supported by billionaire Joao Moreira Salles, have also launched significant projects recently, indicating a bustling environment for ecological initiatives.

Moreover, major corporations, including Google, Microsoft, Meta—the parent company of Facebook—and McLaren Racing have engaged with Brazilian firms to secure carbon credits, affirming the commercial viability of carbon offsetting. Mombak’s contracts for carbon removal currently amount to $150 million, and the company anticipates that figure to quadruple within the coming year. Since its inception in 2021, Mombak has attracted around $200 million in overall investments.

USV managing partner Andy Weissman commented on the potential of the sector, saying, “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.”

This funding round is not merely a financial achievement for Mombak; it represents a significant step forward in addressing climate change through reforestation initiatives.

Mombak’s recent $30 million funding round, led by Union Square Ventures, exemplifies the rising interest in Brazil’s carbon removal landscape. By restoring farm and pasture lands to rainforest, Mombak is positioning itself as a key player in environmental restoration efforts. As more significant investments pour into this sector and corporations seek carbon credits, the implications for climate initiatives become increasingly promising. The company aims to extend its tree planting phase considerably, reflecting the growing commitment to sustainable practices in Brazil.

Original Source: www.marketscreener.com