Rainmatter-backed Climes' carbon credit exchange helps brands chase sustainability

With climate change threatening to disrupt economies, climate finance has become an urgent necessity to support action to mitigate its effects using private capital. Climate finance was also the central focus at the UN Climate Change Conference (COP29) where developed countries agreed to triple finance to developing countries. 

“We are approaching an unavoidable climate tipping point. As climate considerations become essential for every individual and institution, we must ensure that the right solutions are in place—accessible, scalable, and easy to adopt,” Anirudh Gupta, Founder of climate tech startup Climes, tells YourStory.

In 2021, Gupta, along with his then acquaintance Siddhanth Jayaram (formerly with Kalaari Capital), founded Climes, a Delhi-based climate tech startup that has developed a digital finance engine to facilitate the flow of capital into climate projects.

Gupta recognised the potential of climate tech once he saw first-hand the power of affordable green innovation. When he moved back to India in 2016 after serving as a business development executive at Airbus, he wanted to make his lifestyle more sustainable, beyond composting and rainwater harvesting. Gupta reached out to a friend who was building a solar company and she executed the 10KW solar project. 

“It turned out so seamless and economical that six of my neighbours decided to go solar,” Gupta recalls. 

Along with a team of five, Gupta provides stakeholders from across industries with a transparent way to finance carbon projects.

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Over the years, Climes has worked with the likes of travel tech and ticket booking platform MakeMyTrip, multinational company Marico, the British Deputy High Commission Kolkata, VC firm Kalaari Capital,  sustainable footwear startup Neeman’s, D2C snacking brand Nutty Gritties, D2C personal care brand Nature 4 Nature and Earth Rhythm, among others. 

Backed by Peak XV (formerly Sequoia India), Nithin Kamath’s Rainmatter Capital, Avaana Capital, and Aureolis Ventures, Climes raised $1.2 million in its pre-seed round in July 2022. The startup was part of the 2024 Tech30 cohort of most promising startups, compiled by YourStory.

How does it work? 

Climes has a two-part operational model. 

The first part focuses on carbon accounting where Climes “helps enterprises discover their carbon footprints,” Gupta says. He explains that with the help of Climes Carbon Counter, a data-driven carbon accounting tool geared towards logistics and transportation providers, brands can calculate their carbon footprint and provide their customers with data-driven insights. 

The second part focuses on carbon financing where “brands can purchase and distribute carbon credits both physically and digitally,” he explains. 

Climes generates revenue by facilitating the exchange of carbon credits in partnership with brands through its products Climes API, which the brand calls a ‘carbon neutral checkout experience’; Climes LITE, a gamified product for purchase and distribution of carbon credits; and carbon-neutral events. It charges anywhere between $0.03 to $0.10 for neutralising one kg CO2e (carbon dioxide equivalent), tailored according to the client’s specific needs. The carbon accounting API works on a SaaS model, costing $200 per month. 

Market overview 

According to Polaris Market Research, the carbon accounting software market size was valued at $16.63 billion in 2023 and is projected to grow to $95.47 billion by 2032, growing at a CAGR of 21.4% between 2024 and 2032. Prominent players in the space include Climatiq and Patch. 

However, Gupta believes Climes stands out due to its approach to incentivisation, speed and cost-efficiency. “We understand that different stakeholders—whether businesses, consumers, or institutions—are motivated by different factors. By tailoring our incentives to these motivations, we drive greater engagement and commitment to climate action.”

Additionally, Climes notes its solutions are designed for rapid deployment and capital flow, enabling stakeholders to initiate climate actions swiftly and at a fraction of traditional costs. 

So far, Climes has partnered and collaborated with more than 60 mid-market and enterprise-level clients, including the likes of UAE Carbon Alliance, Wipro, WeWork India, and CoreNet Global, among others. Gupta adds that the climate tech startup has over 12 recurring clients. 

Future plans 

Going forward, Climes plans to expand geographically, with a presence in key global markets, starting with the UAE and the US. Additionally, it plans to introduce tailored products to create more opportunities for enterprises and brands to engage in climate action. 

The startup plans to secure another round of external funding in the next six months.