Indigo Ag, a leading sustainability partner in the agriculture industry, has successfully raised over $250 million in funding. The funds will be used to expand its sustainable agriculture programs and increase farmers’ revenues through carbon credits. Indigo Ag, based in the United States, utilizes science and technology to improve the sustainability and profitability of the agriculture sector. This significant fundraising round demonstrates market validation of Indigo’s strategy and confidence in its ability to scale up its agribusiness successfully. With this infusion of capital, the company aims to nearly double its revenue.
The funding round was led by Flagship Pioneering, an existing investor, and attracted new investors such as Lingotto Investment Management, one of Europe’s largest diversified holding firms, and the State of Michigan Retirement System, one of the largest pension funds in the United States. Indigo Ag currently stands as one of the few companies offering high-quality agricultural carbon credits at scale through its carbon farming program, which operates in 14 countries.
Indigo’s carbon farming program provides solutions for companies seeking a market-based approach to capture and store carbon in soils. It offers a credible, nature-based climate solution for businesses. The program utilizes a hybrid approach that combines soil sampling and modeling to help farmers generate agricultural carbon credits that meet industry quality standards. These credits are verified and issued by the Climate Action Reserve for entities committed to purchasing credit offsets. The credits reflect the efforts of farmers who have adopted Indigo’s climate-friendly farming practices, also known as regenerative farming. Examples of these practices include planting cover crops and reducing soil tillage.
Indigo’s integrated business model allows stakeholders in the agriculture supply chain to adopt and profit from their sustainability efforts. Farmers working with the company can maximize their earnings by implementing sustainable farming practices during each year of their rotation while simultaneously improving soil quality. With the infusion of $250 million in capital, Indigo Ag expects its revenue to reach up to $100 million by 2024. Jed Miller, speaking on behalf of Ag Partners Coop, commented on the fundraising success, stating, “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.”
Indigo Ag has achieved significant financial success after attracting additional large investors and expanding its farmer base. Its net revenues for the previous year increased by 40% compared to the year before, while total earnings for the first seven months of this year surged by 90% compared to the same period in 2022. Indigo’s digital sustainability program, Market+ Source, has enabled the company to collaborate 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. The company’s Scope 3 accounting program connects the entire agricultural value chain to produce more sustainable crops. Farmers provide field-level data and earn a premium for sustainably grown grains, contributing to the reduction of carbon emissions.
To date, Indigo Ag has generated approximately 133,000 certified and verified agricultural carbon credits. The company announced its first-ever carbon credits production in June of last year and is currently working on its third carbon crop. Indigo has also seen continued growth in both farmer and acreage participation for its fourth carbon harvest. The company plans to further expand its digital products and has a pipeline of 38 new biological products scheduled for a global launch over the next two and a half years. CEO and President Ron Hovsepian expressed that this significant fundraising achievement is a testament to Indigo Ag’s successful transition from a startup to a trusted partner delivering critical sustainability solutions. He emphasized that the company possesses the necessary scientific expertise, business momentum, and ample resources to transform agricultural sustainability into tangible value.
With its innovative blend of science and technology, Indigo Ag is not only increasing farmers’ incomes but also playing a pivotal role in decarbonizing the agricultural industry to combat climate change.