Indigo Ag, a leading sustainability partner in the agriculture industry, has successfully raised over $250 million in a recent funding round. The capital injection aims to scale the company's unique science and technology to increase farm revenues and reduce carbon emissions. This fundraising effort marks a significant milestone, signaling market validation and confidence in Indigo Ag's strategy to drive sustainable success for farmers and agribusinesses.
Funding Details
The funding round saw participation from existing investors, led by Flagship Pioneering, and welcomed new investors such as the State of Michigan Retirement System—one of the largest pension funds in the U.S.—and Lingotto Investment Management, a $3 billion innovation-focused fund owned by Exor N.V., one of Europe's largest diversified holding companies.
Financial Performance and Growth
Indigo Ag has entered a period of rapid growth, with net revenues for 2022 increasing by 40% year-over-year. The first seven months of 2023 have seen a staggering 90% growth in revenues compared to the previous year. This financial performance underscores the company's successful transition from a startup to a trusted partner in delivering critical sustainability solutions.
Sustainability Programs and Products
Indigo Ag has made significant strides in reducing Scope 3 emissions through its Market+ Source program, working with multi-billion dollar companies. The company is on track to deliver 30 million bushels of sustainably grown grains in 2023. Additionally, Indigo has produced an industry-leading 133,000 registry-issued, agricultural carbon credits of the highest quality and scientific rigor.
Future Plans
Indigo Ag plans to continue the expansion of its digital products, including the Market+ Source sustainable crop program. The company also has a pipeline of 38 new biological products scheduled to launch globally over the next 30 months.
Industry Reactions
Jed Miller, Chief Strategy Officer for Ag Partners Coop, stated that the fundraising is not only a win for Indigo but also a significant win for market access. James Anderson, Managing Partner and Chief Investment Officer – Innovation at Lingotto, emphasized the importance of backing innovative companies like Indigo Ag that are critical to meeting future challenges.
Conclusion
The $250 million fundraise is a testament to Indigo Ag's successful strategy and the market's confidence in its unique approach to sustainable agriculture. With a focus on science, business momentum, and sufficient resources, Indigo Ag is well-positioned for growth and profitability. The company aims to work closely with the agricultural value chain to turn sustainability efforts into real value, benefiting both farmers and corporations.