Terraxy Raises $3M Seed-2 Round to Scale Desert Greening Technology in Saudi Arabia

Terraxy Core Teams: Himanshu Mishra, Adair Gallo, and Batool Albar

Terraxy, a Saudi climate-tech startup spun out of research conducted at the King Abdullah University of Science and Technology (KAUST), has secured $3 million in a Seed-2 funding round led by Wa’ed Ventures, the venture capital arm of Aramco, with strategic participation from KAUST.

The funding marks a significant milestone in Terraxy’s journey from university research to industrial-scale deployment. Founded to address one of the region’s most persistent environmental challenges—land degradation in arid climates—the startup is developing proprietary soil-regeneration technologies designed to improve agricultural productivity while enabling long-term carbon sequestration.

The investment aligns with Saudi Arabia’s broader push to commercialize locally developed deep-tech innovations and supports the Kingdom’s Vision 2030 economic diversification agenda.

Why Are Investors Backing Terraxy’s Desert Greening Technology?

Saudi Arabia's desert environment presents significant challenges for agriculture and ecosystem restoration. Sandy soils typically exhibit poor water retention and low nutrient density, making large-scale greening initiatives both resource-intensive and costly.

Terraxy’s flagship product, Carbosoil, was engineered to solve this challenge.

According to company data validated through the Ministry of Environment, Water and Agriculture's (MEWA) Regulatory Sandbox program, Carbosoil can deliver:

Performance Metric	Impact
Plant growth improvement	Up to 70% increase
Crop yield improvement	Up to 70% increase
Additional water requirement	No increase
Carbon storage duration	Centuries-long sequestration
Commercial facility size	30,000 square meters
Latest funding raised	$3 million

By improving soil structure and nutrient retention, the technology enables stronger plant growth using identical water inputs—a critical advantage in one of the world's most water-scarce regions.

How Does Carbosoil Support Carbon Capture and Carbon Credit Markets?

Beyond agricultural applications, Terraxy is positioning itself within the rapidly emerging carbon management sector.

Carbosoil's engineered soil matrix permanently binds and stores carbon dioxide (CO₂), creating a durable carbon sink capable of retaining captured carbon for centuries. This dual-purpose model allows organizations to simultaneously:

• Improve degraded land productivity
• Restore vegetation in arid environments
• Reduce carbon emissions
• Generate potential carbon credit opportunities
• Support ESG and sustainability targets

As voluntary carbon markets continue to expand globally, technologies that combine environmental restoration with measurable carbon sequestration are attracting increasing investor interest.

What Will Terraxy Do With the New Funding?

The newly secured capital will primarily be used to transition Terraxy from pilot-scale operations to full industrial production.

A key component of this expansion is the construction of a 30,000-square-meter commercial manufacturing facility in Al Zulfi, Saudi Arabia. The facility will significantly increase production capacity and support nationwide deployment of Terraxy’s soil-enhancement solutions.

The funding will also enable the company to:

• Expand commercial partnerships across Saudi Arabia
• Scale manufacturing operations
• Accelerate product deployment in landscaping projects
• Support carbon capture initiatives
• Strengthen research and product development capabilities

Why Does This Matter for Saudi Arabia's Deep-Tech Ecosystem?

Terraxy represents a growing trend within Saudi Arabia’s innovation ecosystem: transforming academic research into commercially scalable ventures.

The startup has received support from KAUST's National Transformation Institute (NTI), helping bridge the gap between laboratory innovation and market adoption.

Its growth also reflects the increasing role of ecosystem builders and investors such as Wa’ed Ventures, KAUST, ADGM-linked investment networks, Hub71-affiliated regional innovation programs, and giga-projects such as NEOM that are creating demand for advanced sustainability and climate technologies across the Gulf.

By commercializing homegrown intellectual property, Terraxy contributes to several national priorities simultaneously:

• Environmental restoration
• Carbon reduction
• Deep-tech commercialization
• Industrial localization
• Economic diversification under Vision 2030

What Does Terraxy's Growth Signal for the Future of Climate Tech in Saudi Arabia?

Terraxy’s $3 million Seed-2 round demonstrates how Saudi Arabia’s research institutions are increasingly producing venture-backed companies capable of addressing global sustainability challenges.

With proven performance metrics, regulatory validation through MEWA, and industrial-scale expansion plans underway, Terraxy is emerging as a notable example of how climate technology, carbon management, and scientific innovation are converging to support the Kingdom’s long-term environmental and economic ambitions.

For Saudi Arabia’s startup ecosystem, the company’s trajectory highlights a broader shift toward deep-tech ventures capable of generating both commercial returns and measurable environmental impact.

 

 

FAQ

1. What is Terraxy and what does it do?
Terraxy is a Saudi climate-tech startup spun out of KAUST research that develops soil-regeneration and carbon sequestration technologies for arid environments.

2. Who invested in Terraxy's latest funding round?
The $3 million Seed-2 round was led by Wa’ed Ventures, Aramco’s venture capital arm, with participation from KAUST.

3. How does Carbosoil improve agricultural productivity?
Carbosoil enhances soil water retention and nutrient availability, helping increase plant growth and yields by up to 70% using the same amount of water.

4. How does Terraxy contribute to carbon capture?
Its technology stores carbon dioxide within the soil structure for centuries, creating a long-term carbon sink and supporting carbon credit initiatives.

5. How does Terraxy support Saudi Vision 2030?
The company advances Vision 2030 by commercializing local research, supporting environmental sustainability, promoting industrial innovation, and contributing to economic diversification.