Startup Originals Team
Carbon Masters India Pvt Ltd (CMIPL), a climate-tech startup known for its sustainable waste-to-energy innovations, has raised a fresh round of equity funding. The investment is led by Schneider Electric Energy Access Asia (SEEAA) along with other prominent backers. The funds will help the company expand its biomethane production, boost its bio-manure portfolio, and enhance operational efficiency. ([turn0search0])
Who Invested & What Changed:
- Lead investors in this round are Schneider Electric Energy Access Asia, Sangam Ventures, and IAN Group. Also contributing are Sriram Sankaran (Synchron Group) and Muthu Murugappan (Murugappa Group).
- As part of the deal, Vikram Raman from SEEAA and Sriram Sankaran have joined Carbon Masters’ board of directors.
What Carbon Masters Does:
- The startup, founded by Som Narayan and Kevin Houston, transforms organic waste that would otherwise be dumped into landfills into renewable biomethane (CBG) and bio-enriched organic manure, under its brand Carbonlites.
- It operates using Special Purpose Vehicles (SPVs) and Joint Ventures with waste management partners. One key JV is Sustainable Impacts with Hasiru Dala Innovations, which runs one of Bengaluru’s authorized wet waste processing facilities for bulk waste generators.
Scale & Operations:
- Carbon Masters currently operates five CBG plants across Karnataka, Telangana, and Tamil Nadu, processing over 36,000 tonnes of municipal solid waste annually through anaerobic digestion.
- The output of Carbonlites CBG is used by commercial kitchens, industries, transport fleets, and in city gas networks as clean fuel, replacing LPG and CNG in many cases. Meanwhile, its organic manure product supports regenerative agriculture by improving soil health and productivity.
Use of Funds & Future Plans:
- The new capital will be used to increase production capacity for Carbonlites biomethane (CBG), scale up its bio-enriched organic fertiliser portfolio, and improve operational efficiency across its existing plants.
- The company also plans to grow its team in sales, marketing, and R&D.
- Carbon Masters is preparing for a next equity funding round to raise capital for five upcoming SPVs. Ostara Advisors, a climate-tech focussed transaction advisory firm, has been appointed as its investment banker.
Why It Matters:
- This investment reflects growing investor confidence in climate technologies and circular economy models in India. Converting organic waste to biofuel and fertiliser tackles multiple challenges: waste management, fuel replacement, and sustainable agriculture.
- Some projects by Carbon Masters already have pipeline injection clearance from GAIL, meaning biomethane can be injected into existing gas pipelines, which is a notable regulatory and technical achievement.
Conclusion:
The fresh equity raise led by Schneider Electric and others is a big step for Carbon Masters. With its current operations across multiple states, and pipelines for expansion, the startup is well-positioned to scale its impact in clean energy and sustainable agriculture. If its growth plans succeed, Carbon Masters could play a significant role in India’s transition toward low-carbon solutions and more sustainable waste management.
