Terraxy raises $3M for Saudi soil regeneration tech that stores carbon in desert soils

Terraxy, a startup from KAUST in Saudi Arabia, raised $3 million in Seed-2 funding led by Wa’ed Ventures, the venture arm of Aramco. The company will use the money to scale Carbosoil, a soil enhancer that improves plant growth by up to 70% in sandy soils while locking carbon into the ground for centuries. A new 30,000-square-meter production facility is planned in Al Zulfi. The technology was validated through Saudi Arabia’s MEWA regulatory sandbox, meaning it meets both environmental and compliance standards. Terraxy’s approach targets two problems at once: desertification and durable carbon storage. The company sees a role in the carbon credit market as buyers look for verifiable, long-term removal methods. For anyone tracking carbon removal in dry regions or the Saudi Green Initiative, this is a concrete example of lab science moving toward industrial deployment. The funding round and facility buildout will test whether Carbosoil can deliver at scale and generate credits that buyers trust.