Climatetech startup Carbon Masters raises funding from Schneider Electric Energy Access Asia, others

Carbon Masters India Pvt Ltd (CMIPL), a climatetech startup, has raised an undisclosed amount in a fresh round of equity funding led by Schneider Electric Energy Access Asia (SEEAA), Sangam Ventures, and IAN Group.

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The round also saw participation from Sriram Sankaran, Managing Director of Synchron Group, and Muthu Murugappan, CEO of Murugappa Group.

As part of this investment, Vikram Raman from SEEAA and Sriram Sankaran have joined Carbon Masters’ Board of Directors.

Founded by Som Narayan and Kevin Houston, Carbon Masters is focused on converting organic waste streams otherwise bound for landfill into renewable biomethane and bio-enriched organic manure, marketed under its flagship Carbonlites brand.

The startup executes CBG (Compressed Biogas) and Organic manure projects through Special Purpose Vehicles (SPVs) and joint ventures (JVs) with strong waste management partners. Its flagship JV, Sustainable Impacts with Hasiru Dala Innovations, operates one of the few authorised wet waste processing facilities in Bengaluru, designated to handle the city’s bulk generators’ organic waste.

The project has also secured pipeline injection clearance from GAIL, with pipeline laying now completed. It will also supply Carbonlites gas to hotels, restaurants, and industries as a substitute for LPG and CNG.

The startup plans to use the raised capital to expand the production capacity of Carbonlites Biomethane (CBG), scale its carbonlites bio-enriched organic fertiliser portfolio, and enhance efficiency across existing operations. It is also focused on building the team across sales, marketing, and R&D.

Carbon Masters is now preparing for its next equity round to finance five upcoming SPVs, with Ostara Advisors, India’s first climate-tech-focused Transaction Advisory firm, appointed as investment bankers.

It claims to operate five CBG plants across Karnataka, Telangana, and Tamil Nadu, collectively processing over 36,000 tonnes of municipal solid waste annually through anaerobic digestion. Its 80+ member team supplies Carbonlites CBG to commercial kitchens, industries, transport fleets, and city gas networks, while Carbonlites Bio-Enriched Organic Manure supports regenerative agriculture by improving soil health and farm productivity.

“We are proud to support Carbon Masters in its mission to decarbonise critical sectors of the Indian economy. Investing in scalable clean energy infrastructure and sustainable agriculture solutions is vital to building a resilient and inclusive low-carbon future,” said Gilles Vermot Desroches, SVP, Corporate Citizenship, Schneider Electric & President, SEEAA.

“Carbon Masters’ innovative circular economy business model aligns with our vision of financing deep decarbonization pathways. The company’s potential to displace fossil fuels while improving soil health makes it a compelling climate-tech investment,” said Karthik Chandrasekar, CEO, Sangam Ventures.

“IAN has topped up its investment in Carbon Masters. This is a strong endorsement of the team’s execution and their ability to keep evolving. Carbon Masters reflects IAN’s thesis of solving real problems through innovation,” said Padmaja Ruparel, Co-founder, IAN Group.