Saudi Arabian deeptech startup Terraxy, an environmental technology company spun out of research at King Abdullah University of Science and Technology, has secured three million dollars in a Seed-2 funding round led by Wa’ed Ventures, the venture capital arm of Aramco, with additional participation from the university. This capital injection is designed to accelerate the company’s transition from pilot production to commercial manufacturing. A central milestone of the expansion includes the development of a 30,000-square-meter commercial manufacturing facility located in Zulfi, Saudi Arabia. The investment enables the wide deployment of specialized, locally developed land-restoration technologies that align with regional decarbonization frameworks and national sustainability objectives.

The primary environmental and economic challenges addressed by the startup involve severe land degradation, sandy soil structures, and limited resource conservation capacity in desert environments. Arid regions naturally suffer from low agricultural productivity because sandy soils exhibit minimal water and nutrient retention capabilities. These poor soil qualities hinder regional landscaping, commercial farming, and large-scale desert greening initiatives, leading to excessive resource consumption. Furthermore, corporate and governmental entities face rising pressure to deploy scalable, permanent carbon capture and storage solutions to combat atmospheric emissions, yet few options simultaneously fix degraded ecosystems while offering multi-century carbon sequestration.

To resolve these overlapping environmental constraints, Terraxy engineered a proprietary, nature-inspired soil enhancer branded as CarboSoil, which permanently enriches soil infrastructure through a single five percent application. Developed from laboratory research led by Professor Himanshu Mishra, this solution utilizes specialized porous matrices to optimize the physical properties of arid earth, increasing nutrient retention by 53 percent and water retention by 11 percent. The technology permanently alters soil composition to enhance crop resilience while capturing atmospheric carbon within the ground for centuries. The production process has advanced through regulatory validation within the Sandbox environment of the Ministry of Environment, Water and Agriculture.

The near-term operational outcomes of this venture funding focus on commercializing laboratory deeptech to achieve measurable agricultural and climate goals. By expanding production into the new Zulfi facility, the firm provides commercial landscaping and agricultural projects with an input capable of boosting plant growth by 20 to 70 percent under identical watering regimes. Financially, the industrial scaling demonstrates a repeatable path for university research spinouts to attract private sector venture capital. Environmentally, the widespread adoption of the technology establishes a high-permanence carbon sink across the Kingdom of Saudi Arabia, directly contributing to long-term economic diversification and regional land rehabilitation targets.