Saudi-based start-up Terraxy has raised $3 million in a Seed-2 round led by Wa’ed Ventures, the venture capital arm of Aramco, with participation from King Abdullah University of Science and Technology (KAUST), as it looks to scale soil-regeneration technologies for desert environments.
Wa’ed Ventures is backed by Saudi Aramco – officially the Saudi Arabian Oil Company – the Kingdom’s national oil company, widely regarded as the world’s largest oil producer and, by some measures, the most profitable company globally.
The funding will support Terraxy’s transition from pilot-scale production to industrial deployment, including the construction of a 30,000-square-metre commercial facility in Al Zulfi. The move marks a significant step toward commercialising technology developed within Saudi Arabia’s research ecosystem.
Wa’ed Ventures CEO Anas Algahtani said the investment reflects a focus on “deep-tech solutions that address real challenges” while offering scalability, highlighting Terraxy’s ability to move from scientific research to industrial application.
Tackling degraded soils in arid regions
Globally, around one-third of soils are degraded, undermining agricultural productivity and ecosystem resilience. The challenge is particularly acute in Saudi Arabia, where sandy soils struggle to retain water and nutrients, limiting farming and large-scale greening initiatives.
Terraxy’s proprietary soil enhancer, Carbosoil, is designed to address this gap. The company claims it can deliver up to a 70% improvement in plant growth and yield using the same levels of water and nutrients, boosting resource-use efficiency in water-scarce environments.
Dual focus: productivity and carbon capture
Beyond improving soil quality, Terraxy is positioning its technology as a tool for carbon management. The company says its approach can store CO₂ in soils for centuries, aligning with growing demand for solutions that address both emissions reduction and land restoration.
Ahmad O. Al-Khowaiter, Aramco’s executive vice president of technology and innovation, described Terraxy as an example of “dual-impact innovation” capable of tackling land degradation while contributing to carbon removal.
Regulation and ecosystem support
Terraxy has progressed through Saudi Arabia’s Ministry of Environment, Water and Agriculture (MEWA) Regulatory Sandbox, which enables emerging technologies to be tested under real-world conditions.
According to MEWA Deputy Minister for Research and Innovation Dr. Abdulaziz Almalik, such frameworks are designed to accelerate the deployment of locally developed technologies while ensuring environmental validation and safety.
KAUST spinout scales with national backing
As a KAUST spinout, Terraxy has benefited from close collaboration with research institutions and national innovation programmes. The National Transformation Institute (NTI) at KAUST has supported the company’s progression from lab research to pilot and now commercial scale.
Professor Himanshu Mishra, Terraxy co-founder, said the company’s development reflects the strength of the surrounding innovation ecosystem rather than a single breakthrough, while NTI’s Dr. Ian Campbell pointed to the role of such technologies in supporting Saudi Arabia’s Green Initiative and emerging carbon markets.
Sustainability ambitions drive investment
The funding comes as Saudi Arabia accelerates efforts to green its landscapes and improve resource efficiency under Vision 2030. For investors, Terraxy represents a growing class of technologies that combine agricultural productivity gains with environmental impact.
With industrial-scale production now in sight, the company is positioning itself at the intersection of soil health, water efficiency and carbon capture – a space attracting attention as climate and food security pressures intensify.