Indigo Ag, the leading sustainability partner of the agriculture industry, raised +$250 million to further grow its sustainable agriculture programs and boost farmers’ revenues with carbon credits.
U.S.-based Indigo Ag harnesses science and technology to help improve the sustainability and profitability of the agriculture industry. The huge fundraise signals market validation of Indigo’s strategy and confidence in its ability to scale up agribusiness successfully. The fresh funds will help the company to almost double its revenue.
The funding round was led by Flagship Pioneering, an existing investor, and is participated by new investors that include Lingotto, an investment management company owned by Exor, one of Europe’s largest diversified holding companies.
Indigo is currently one of the only companies providing companies with high-quality agricultural carbon credits at scale, via its carbon farming program operating across 14 countries.
How Indigo’s Program Generates Ag Carbon Credits
Indigo’s carbon farming program provides solutions to companies looking for a market-based approach to capture and store carbon on soils. It offers a credible, nature-based climate solution for businesses.
Indigo adopted a hybrid approach that combines soil sampling and modeling to help farmers generate agricultural carbon credits that meet industry quality standards. The Climate Action Reserve then verifies and issues the credits for entities committed to buying credit offsets.
The credits reflect the works of farmers who opted for Indigo’s climate-friendly farming practices, which is also called regenerative farming. Common examples include planting cover crops and less soil tillage.
Here is how agricultural carbon credits generation works through Indigo’s carbon farming program:
Indigo’s integrated business model enables actors in the agriculture supply chain to adopt and profit from their sustainability efforts. In particular, farmers working with the company can maximize their earnings by performing sustainable farming practices, each year of their rotation, while also improving soil quality.
With the $250 million new capital, Indigo expects revenue to grow up to $100 million by 2024.
Speaking for Ag Partners Coop, Jed Miller commented on the raise saying:
“Farmers and agribusinesses need strong, innovative partners that create value… This fundraise is not only a win for Indigo, but a major win for market access. We look forward to continuing our collaboration with Indigo to drive farmer success.”
Delivering Agricultural Sustainability Solutions at Scale
After attracting additional large investors and more farmers to serve, Indigo was able to achieve great financial success.
Its net revenues for last year increased 40% compared to the previous year, while total earnings for the first 7 months this year jumped 90% versus 2022.
Moreover, Indigo’s digital sustainability program, Market+ Source, enabled the company to work with multi-billion dollar companies in reducing their Scope 3 emissions. Through this initiative, Indigo is on track to provide partners with 30 million bushels of sustainably grown products this year.
Its Scope 3 accounting program connects the entire ag value chain to produce more sustainable crops. Under this program, farmers provide field-level data and earn a premium for sustainably grown grains, which help reduce carbon emissions.
To date, Indigo Ag has generated around 133,000 certified and verified agricultural carbon credits. The company revealed its first-ever carbon credits production in June last year.
The ag sustainability champion is currently working on its 3rd carbon crop. The company also said that enrollment for its 4th carbon harvest showed continued growth in both farmer and acreage participation.
Indigo aims to expand its digital products further and has a pipeline of 38 new biological products scheduled for a global launch over the next two and a half years.
The significant fundraise is a testament to “Indigo Ag’s successful transition from a startup to a trusted partner that is delivering critical sustainability solutions”, the company’s CEO and President Ron Hovsepian said. He also added that they have the science, business momentum, and ample resources to turn agricultural sustainability into real value.
With an innovative approach that blends science and technology, Indigo Ag is not only boosting farmers’ incomes but also playing a pivotal role in decarbonizing the agricultural industry to combat climate change.