Terraxy, a KAUST spinout startup, has raised $3 million in a Seed-2 funding round led by Wa’ed Ventures, the Saudi-based venture capital arm of Aramco, with participation from KAUST.
The new funding will support Terraxy’s expansion in soil regeneration and carbon sequestration technologies, with a focus on landscaping and desert greening projects across Saudi Arabia.
Funding to Support Industrial-Scale Expansion
The investment will help Terraxy move from pilot production to industrial-scale manufacturing, enabling the wider deployment of its technologies across different regions of the Kingdom.
As part of its expansion plans, the company aims to establish a 30,000-square-meter commercial facility in Zulfi, marking an important step toward commercializing its technology and turning it into an industrial solution that can be applied at scale.
The investment also reflects Wa’ed Ventures’ role in supporting locally developed deep technologies and accelerating their transition from research labs to market-ready solutions capable of addressing real environmental and economic challenges.
Soil Regeneration Solutions for Desert Environments
Saudi Arabia’s soil faces several challenges due to its sandy nature and limited ability to retain water and nutrients. These conditions affect agriculture, landscaping, and large-scale greening initiatives.
Terraxy is working to address these challenges through CarboSoil, its proprietary soil enhancer. The product can improve plant growth and productivity by up to 70% while using the same amounts of water and nutrients.
This gives the technology particular importance for sustainability projects in Saudi Arabia, as it helps improve resource efficiency, enhance soil fertility, and support the rehabilitation of degraded land.
From KAUST Research to the Market
Terraxy was founded based on research developed at KAUST and has already demonstrated the effectiveness of its technology through pilot production and collaboration with industrial partners.
The company provides a clear example of how university research can move from the lab to commercial application, especially in sectors linked to sustainability, natural resource management, and emissions reduction.
Terraxy has also benefited from KAUST’s innovation ecosystem, including its research infrastructure and the support of the National Transformation Institute, which helps promising technologies scale and align with national priorities.
Regulatory Support from the Ministry of Environment, Water and Agriculture
Terraxy has made progress through the regulatory sandbox of the Ministry of Environment, Water and Agriculture, which allows emerging environmental products, services, and technologies to be tested and validated under real-world conditions.
This sandbox is an important factor in accelerating the adoption of local innovations, as it enables companies to test their solutions within a regulatory framework that supports responsible deployment and market readiness.
The step also highlights the importance of soil health in achieving the Kingdom’s targets related to food security, water efficiency, and land rehabilitation.
Technology Supporting Carbon Sequestration and Sustainability
Beyond improving soil fertility, Terraxy’s technology stands out for its ability to contribute to carbon sequestration, giving it an important role in scalable environmental solutions.
The technology addresses land degradation and carbon removal at the same time, with the potential to store carbon dioxide in a stable form for long periods.
The investment comes as Saudi Arabia continues to advance large-scale greening and sustainability initiatives, increasing the need for local technologies that can improve soil quality, raise resource efficiency, and support the green economy.
An Investment Strengthening Deep Tech in Saudi Arabia
Wa’ed Ventures’ investment in Terraxy reflects the growing interest in deep tech startups, particularly those offering practical solutions in the fields of environment, agriculture, sustainability, and carbon sequestration.
The funding also underlines the importance of turning research outcomes into scalable industrial and commercial products, in line with Saudi Vision 2030’s goals for sustainability and economic diversification.
As Terraxy moves toward industrial-scale production, the company is becoming better positioned to play a larger role in desert greening projects and soil fertility improvement across the Kingdom.
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