Brazilian carbon removal startup Mombak has reached the first closing of its second investment vehicle, the Amazon Reforestation Fund II, which targets up to US$150 million in total commitments. The company did not disclose the identity of the investor or the amount secured in this initial closing. The announcement was made during New York Climate Week, signaling a new phase of scale for the Amazon restoration specialist.
Second Fund and BNDES Credit Line
Alongside the fund closing, Mombak has secured a credit line of R$200 million, approximately US$40 million, from Brazilian development bank BNDES. The financing carries an annual interest rate of 2.3 percent and will be directed to project execution. This second fund arrives five years after Mombak was founded by Peter Fernandez, former CEO of 99, and Gabriel Haddad Silva, former CFO of Nubank.
Track Record From the First Fund
Mombak's first fund raised US$120 million and financed the restoration of 27,000 hectares in the state of Pará. It planted nearly 15 million trees across more than 100 species and worked with 15 farms. In July, the company issued its first reforestation carbon removal credits under the protocol of British certifier Isometric and delivered them to buyers including Google, McKinsey, Bain, McLaren Racing and Union Square Ventures.
Salesforce Joins Growing Buyer Base
Mombak also announced an offtake agreement with Salesforce for future carbon removal credits, with an initial tranche of 2,000 credits already delivered. Salesforce joins a customer list that already includes Microsoft and Google. The company expects to issue about 80,000 tonnes of credits in 2026, lifting the annual total beyond 100,000 tonnes.
Operational Lessons and Higher Productivity
Experience from the first fund led Mombak to move away from an early reliance on natural regeneration, which lacked business predictability. The company now prioritizes planting native species using methods closer to commercial forestry, adapted to the Amazon context. It has invested more in species selection, genetic improvement, seed origin, seedling quality, and management practices, with part of the team coming from Suzano.
Capital Structure and BNDES Strategy
As with the first fund, investor capital will finance land acquisitions or rural partnerships, while BNDES funds will cover restoration execution. The BNDES operation totals R$200 million within a project requiring R$457 million in investment, with the remaining R$257 million coming from Mombak's own resources. The project includes restoration of about 20,000 hectares of degraded pasture and investments in technology and nurseries.
Market Evolution and Long-Term Vision
Mombak's chief executive said the carbon market is becoming more cautious, making presigned offtake contracts essential before new projects are financed. This mirrors the renewable energy sector, where buyers and sales contracts are secured before construction. The company has already raised more than US$250 million from institutions including the World Bank, BNDES, DFC, Rockefeller Foundation, CPP Investments, Bain Capital and AXA.
Mombak's latest fund and credit line illustrate the growing maturity of tropical reforestation as an investable asset class. The combination of private capital, development finance and long-term corporate buyers is helping the startup align financial returns with forest restoration timelines. Even so, the key challenge remains reconciling the pressure for scale with the patient pace required for native forests to grow and deliver durable carbon removals.
Source: Reuters