A sustainable farming company that helps fight climate change has secured $250 million in funding, a boost it expects will help nearly double revenue.
Boston-based Indigo Ag Inc. sells microbes to farmers to boost yields and also helps growers generate credits for sequestering carbon in the ground with methods such as cover crops. With the new funding, Indigo expects to increase revenue to between $80 million and $100 million next year. That’s after the company grew about 90% so far this year.
The round of funding comes as rising interest rates and easing crop prices have crimped investment in agricultural startups. Flagship Pioneering led the round, which included new investor Lingotto Investment Management LLP, owned by Exor NV, according to Indigo Ag.
“From an overall fundraising environment, it was extremely difficult,” Indigo Ag Chief Executive Officer Ron Hovsepian said in an interview. “People were so focused on protecting where they were in the market or their own investments that made it made it difficult to have people come in.”
Read More: US Farmers Are Getting Paid More for Capturing Carbon in Fields
Indigo Ag said it has generated 133,000 carbon credits and has more than 14 million acres enrolled in its sustainability platform.
“We believe that Indigo Ag has endured demanding times, but now has a bright future and an important role in mitigating climate damage,” James Anderson, a managing partner at Lingotto, said Friday in an Indigo AG statement.
Currently about 80% of the business is biologicals and the rest carbon. In about three years, the balance will shift to about half and half before the carbon side of the business becomes the larger component in about five years. That’s also after the company streamlined its operation by reducing some services such as grain transportation and agronomy.
“We intend to grow in that rough doubling fashion over the next several years,” said John Frederick, chief financial officer.
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