Carbon Credit MRV and Issuance Platform for Indian MSMEs
An unincorporated partnership pitching in opaque carbon-market jargon was rebuilt around the EU Carbon Border Adjustment Mechanism as a concrete, quantified cost-avoidance product for Indian exporters.
- Origin
- Co-founded by a carbon markets practitioner and an IIT electrical engineering researcher
- Founded
- 2023
- Core Innovation
- Automated measurement, reporting, and verification platform reducing carbon credit issuance cost from ₹3.2 lakh to ₹18,000 per project. Target segment: Indian MSME exporters facing EU Carbon Border Adjustment Mechanism compliance obligations.
- Capital Outcome
- ₹5.20 Crore seed equity from a climate technology venture fund with co-investment from a climate impact fund
Diagnostic findings at engagement
- No legal entity existed at engagement; the two founders were operating as an unincorporated partnership with no co-founder agreement.
- Pitch materials relied on specialist carbon market terminology (referencing CORSIA, the Verified Carbon Standard, and Gold Standard certification schemes) without translation for a generalist venture investor audience.
- No reference was made anywhere in the pitch to the EU Carbon Border Adjustment Mechanism, despite its direct relevance as a near-term compliance driver creating mandatory demand among the target customer segment.
- The revenue model led with a ₹2,400 monthly SaaS subscription fee, with the considerably larger 4% platform fee on carbon credit issuance value disclosed only on a later slide.
- Market sizing referenced the global voluntary carbon market without India-specific segmentation or quantification of the addressable customer base.
Service interventions applied
Business Structure
Incorporated the company, executed a co-founder agreement with four-year cliff vesting, established a 15% ESOP pool reserved prior to investor dilution, and assigned all MRV algorithm intellectual property to the corporate entity.
Pitch Reframing Around Regulatory Driver
Repositioned the EU Carbon Border Adjustment Mechanism as the opening narrative element: a mid-sized Surat textile exporter facing an estimated ₹80 lakh annual carbon tariff cost from 2026 absent certified offsets, with the platform positioned as the affordable certification pathway.
Revenue Model Restructuring
Moved the 4% platform fee on issued carbon credit value to the primary revenue narrative position, demonstrating that at 500 customers issuing an average of 500 credits annually at ₹800 per credit, platform fee revenue of approximately ₹8 Crore annually substantially exceeds SaaS subscription revenue of ₹1.44 Crore at the same customer base.
Market Research
Replaced the undifferentiated global voluntary carbon market reference with a specific addressable segment of 8,400 Indian exporters across textiles, steel, aluminium, and fertiliser facing mandatory EU carbon reporting obligations by 2026, yielding a quantified addressable platform-fee revenue opportunity of approximately ₹340 Crore.
Go-to-Market Strategy
Designed a distribution channel through India's Export Promotion Councils (specifically the Engineering Export Promotion Council, the Apparel Export Promotion Council, and the Indian Textile Accessories and Machinery Manufacturers' Association), securing a first formal partnership letter within eight weeks.
Investor Introductions
Facilitated introductions to two climate technology-focused investors. The CBAM-anchored narrative and the Export Promotion Council partnership letter were specifically cited by both investors as decisive credibility signals during the investment process.
Position at engagement vs. position at close
Swipe the table sideways to compare.
| Dimension | At engagement | At close |
|---|---|---|
| Pitch Anchor | Carbon market terminology, opaque to generalist investors | EU CBAM cost-avoidance narrative, immediately legible |
| Revenue Emphasis | SaaS subscription (₹1.44 Cr at 500 customers) | Platform fee on issuance value (₹8 Cr at 500 customers) |
| Legal Structure | Unincorporated partnership | Private limited company, ESOP pool, IP assigned |
| Capital Secured | ₹0 | ₹5.20 Crore |