Carbon Masters secures fresh funds to scale biogas business

Bengaluru headquartered climate-tech firm Carbon Masters India Pvt Ltd (CMIPL) has raised an undisclosed amount of equity funding to expand its Carbonlites portfolio of biomethane or biogas, and organic fertilisers. The round was led by Schneider Electric Energy Access Asia (SEEAA), Sangam Ventures, and IAN Group, with additional participation from industry leaders including Sriram Sankaran of Synchron Group and Muthu Murugappan of the Murugappa Group.

As part of the deal, Vikram Raman (SEEAA) and Sriram Sankaran have joined the Carbon Masters Board.

The new capital will be used to expand biomethane production, scale fertiliser output, boost efficiency, and strengthen sales, marketing, and R&D teams. The company is also preparing its next equity round to fund five upcoming SPVs.

Founded by Som Narayan and Kevin Houston, CMIPL converts organic waste into renewable compressed biogas (CBG) and bio-enriched manure under the Carbonlites brand. The company executes projects through Special Purpose Vehicles (SPVs) and joint ventures with waste management partners. One notable JV, Sustainable Impacts with Hasiru Dala Innovations, runs a licensed wet waste facility in Bangalore that will soon inject biomethane into India’s gas grid. The plant will also supply clean fuel to hotels, restaurants, and industries as an alternative to LPG and CNG.

Som Narayan, CEO & Co-founder, Carbon Masters, stated, “We are grateful for the continued trust of our investors, which reflects confidence in our business and growth plans. This investment will help us further strengthen operations and scale sustainably, as we continue to support India’s transition to a low-carbon future and help our customers meet their net zero goals.”

Currently, Carbon Masters operates five CBG plants across Karnataka, Telangana, and Tamil Nadu, processing more than 36,000 tonnes of municipal solid waste annually. Its 80-member team supplies Carbonlites CBG to industries, transport fleets, and city gas networks, while its organic fertiliser supports regenerative agriculture.

Investor confidence remains strong. SEEAA’s Gilles Vermot Desroches called the investment “vital for a resilient low-carbon future,” while Sangam Ventures’ CEO Karthik Chandrasekar praised its “deep decarbonization potential.”