Terraxy Raises $3 Million to Scale Soil Regeneration and Carbon Capture Technology

Saudi deeptech startup Terraxy has secured $3 million in a Seed-2 funding round led by Wa'ed Ventures, with participation from King Abdullah University of Science and Technology (KAUST), as the company advances the commercialization of technologies aimed at regenerating degraded soils and capturing carbon.

Originating from research conducted at KAUST, the company is currently scaling industrial production through a 30,000-square-metre facility in Zulfi. The fresh capital will be used to expand manufacturing capabilities and accelerate the deployment of its technology across agriculture, arid environments, and carbon capture applications.

Terraxy's flagship product, CarboSoil, is designed to improve water and nutrient retention in sandy soils. According to the company, the material can boost plant growth and productivity by up to 70% without requiring additional water or nutrients, while simultaneously storing carbon dioxide in the soil for centuries.

The startup has also participated in the Ministry of Environment, Water and Agriculture's Regulatory Sandbox, enabling emerging environmental technologies to be tested under real-world conditions.

The funding comes as Saudi Arabia intensifies land restoration efforts under the Saudi Green Initiative and Vision 2030. Ahmad Al-Khowaiter, Aramco's Executive Vice President of Technology and Innovation and Chairman of Wa'ed Ventures' Investment Committee, described Terraxy's approach as addressing both land degradation and decarbonisation challenges.