Exclusive: Deutsche Telekom backs carbon removal marketplace
Illustration: Sarah Grillo/Axios
Carbon removal market Pachama has added $9 million to its Series B from the venture arm of Deutsche Telekom, the startup tells Axios exclusively.
Driving the news: The investment from the telecom giant's VC arm, known as T.Capital, brings Pachama's Series B to $64 million.
- CEO Diego Saez Gil tells Axios that he hopes Deutsche Telekom, the parent company of T-Mobile U.S., will also become a customer and a distribution partner after the investment.
How it works: Pachama, based in San Francisco, connects carbon credits buyers with conservation and reforestation projects.
- The company uses satellite imaging to verify that trees and plants are being cultivated and, in turn, absorbing carbon.
- Amazon, Salesforce and Shopify are among the corporate clients that use Pachama to buy carbon removal credits.
Catch up fast: Pachama closed its initial $55 million Series B in May 2022, led by Future Positive.
- Lowercarbon Capital, Breakthrough Energy Ventures, Amazon's Climate Pledge Fund, Plus Capital, ReGen Ventures and 20VC are among the company's investors, as well as tennis star Serena Williams, talk show host Ellen DeGeneres, actors Portia De Rossi and Laura Dern, and Reddit co-founder Alexis Ohanian.
The intrigue: Pachama's large Series B raise will help pay for costly computing power and machine-learning engineers. But it will also support an expansion into project financing.
- Infrastructure investor Perenfra, for example, invested $12 million via Pachama to finance a carbon removal project in the Lower Mississippi River Valley.
What's next: Pachama is exploring additional revenue streams from selling carbon removal monitoring subscriptions and other data services.
