Saudi Arabia is investing in technologies that could make large-scale greening projects more viable in some of the world’s harshest environments. The startup plans to build a commercial facility in Saudi Arabia as demand grows for technologies that improve soil health, water efficiency, and carbon removal.

Terraxy, a startup spun out of King Abdullah University of Science and Technology (KAUST), raised USD 3 million in a Seed-2 funding round. The round was led by Wa’ed Ventures, Aramco’s venture capital arm. It also saw participation from KAUST. The investment will help Terraxy expand production of its soil-regeneration technology and accelerate deployment across the Kingdom.

Why You Should Care

Saudi Arabia has committed significant resources to environmental restoration, land rehabilitation, and sustainability initiatives. Yet one of the biggest obstacles remains the quality of the soil itself. Sandy soils struggle to retain water and nutrients, making agriculture, landscaping, and greening projects more expensive and resource intensive.

Terraxy is developing a solution designed specifically for those conditions. Its proprietary soil enhancer, Carbosoil, aims to improve soil performance while supporting carbon storage. The company says the technology can increase plant growth and yields by as much as 70% while using the same levels of water and nutrients.

The Details

Founded in 2023 by Himanshu Mishra and Adair Gallo, Terraxy is an agriculture tech startup. It is a spin-off from King Abdullah University of Science and Technology (KAUST). Its mission is to create sustainable soil fertility that lasts

Looking ahead, the new funding will support its transition from pilot-scale production to industrial production and deployment across Saudi Arabia. This includes the establishment of a 30,000-square-meter commercial facility in Al Zulfi, marking a step toward large-scale commercialization

The investment also reflects a broader trend within Saudi Arabia’s startup ecosystem. Investors are showing increased interest in deep-tech companies that address national priorities. This includes water security, climate resilience, food production, and emissions reduction.

“Our investment in Terraxy reflects our conviction in deep-tech solutions that address real challenges in Saudi Arabia while offering scalable commercial potential. What differentiates Terraxy is not only the strength of its underlying science, but its ability to translate that science into a deployable, industrial solution,”

Anas Algahtani, Wa’ed Ventures CEO

Terraxy’s development has been supported by Saudi Arabia’s regulatory ecosystem as well. The company has progressed through the Ministry of Environment, Water and Agriculture’s Regulatory Sandbox. This is a framework designed to test emerging environmental technologies under real-world conditions before wider market adoption.

The company’s ambitions extend beyond agriculture and landscaping. Terraxy positions its technology as a climate solution capable of addressing both land degradation and carbon management.

“Reducing emissions across hard-to-abate sectors requires practical, scalable solutions grounded in strong science. Terraxy’s technology addresses land degradation and carbon removal simultaneously and is capable of storing CO₂ durably for centuries,”

Ahmad O. Al-Khowaiter, Aramco Executive Vice President of Technology & Innovation and Chairman of Wa’ed Investment Committee

The Ripple

The funding round highlights how Saudi Arabia’s innovation ecosystem is increasingly connecting research institutions, regulators, investors, and industry around commercialization.

For startups, it signals growing investor appetite for technologies rooted in scientific research rather than purely digital business models. For universities, it demonstrates a pathway for academic research to reach commercial markets. For sustainability-focused investors, it reflects rising interest in technologies that can generate environmental impact while addressing practical economic challenges.

The deal also reinforces the role that venture capital is playing in supporting Vision 2030 priorities, particularly in sectors linked to climate technology, resource efficiency, and advanced materials.

What to Watch

The next milestone will be Terraxy’s transition from pilot-scale operations to full commercial production.

Investors and industry observers will be watching whether the company can successfully deploy Carbosoil at scale and demonstrate measurable improvements across large greening and land rehabilitation projects. The launch of its commercial facility in Al Zulfi will offer an early indication of how quickly demand for soil-enhancement technologies is developing within Saudi Arabia’s sustainability ecosystem.

If successful, Terraxy could become a case study for how Saudi university research evolves into industrial-scale businesses aligned with the Kingdom’s environmental and economic ambitions.