Dubai, June 25, 2026 – Saudi Arabia-based deeptech startup Terraxy has raised $3 million in a seed funding round led by Wa’ed Ventures, the venture capital arm of Aramco, with participation from King Abdullah University of Science and Technology. The company plans to use the new funding to transition from pilot-scale production to industrial deployment, which includes the development of a 30,000-square-meter commercial facility in Al Zulfi, Saudi Arabia.
Founded by professor Himanshu Mishra and chemical engineer Adair Gallo as a spinout from KAUST, Terraxy develops proprietary technologies to regenerate degraded soils in arid environments. Its flagship product, Carbosoil, is an engineered soil enhancer that improves water and nutrient retention in sandy soils. The biocoal can increase plant growth and yields by up to 70% while using the exact same amount of water and fertilizers.
The technology was developed through years of research by Gallo, a Brazilian national, and Mishra, who is Indian. Inspired by the nutrient-rich black earth found in the Amazon rainforest, the team created a thermochemical process that carbonizes organic compounds into biomass. This process delivers vital nutrients to desert soil and offers long-term carbon sequestration capabilities by safely storing atmospheric carbon dioxide for centuries.
Alongside Carbosoil, the founders developed SandX, a material consisting of sand and paraffin that repels water and prevents soil moisture from evaporating in the dry desert climate. To meet growing local agricultural demand, the company is currently expanding its Carbosoil output twentyfold.
The latest investment reflects a growing corporate and investor interest in deeptech solutions that address national priorities such as water security, sustainability, and land rehabilitation.
“We saw that we were in line with the kingdom’s vision and that the research products were commercially viable,” Gallo said.
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Image Suggestion: I recommend using the photograph of founders Adair Gallo and Himanshu Mishra featured in the original ANBA report. Human-centric imagery of founders generally performs well for B2B funding announcements. Alternatively, if you want to emphasize the business case for sustainability and ESG to corporate readers, a high-quality stock image of sustainable desert agriculture or smart irrigation would strongly complement the story’s theme.