Indigo Ag, Inc., a company dedicated to harnessing nature to help farmers sustainably feed the planet, announces the first closing of $156 million in its Series D financing, doubling the company’s total capital raised to over $300 million.
New investors, including Baillie Gifford and Activant Capital, join the company’s founder and first investor, Flagship Pioneering, and existing investor, the Alaska Permanent Fund, in this closing. J.P. Morgan acted as sole placement agent to Indigo on this transaction. This latest round will support Indigo’s commitment to building a new kind of agriculture company — one that is focused on improving farmer profitability, environmental sustainability, and consumer health.
This follows news last July that Indigo raised $100M in Series C funding, which was a record for agtech. It also comes after preliminary data released last month revealed Indigo’s microbial seed treatment product for wheat, Indigo Wheat, shows an average yield improvement of 15.7% in expected conditions and 8.3% across all conditions in water-stressed target region of Kanas.
The latest round now has Indigo valued at $1.4 billion. “At Indigo, we’re working to connect agricultural practice to consumer preference,” said David Perry, President and CEO of Indigo. “This essential connection will dramatically accelerate the adoption of new sustainable technologies in agriculture, allowing for healthier people and a healthier planet.”
Last month, Indigo announced its intention to contract with leading farmers to produce 10.5 million bushels of Indigo Wheat for a 43 cent per bushel premium. This significant premium represents buyer willingness to pay more for high-quality and transparently sourced wheat. In addition to the premium price, growers can also expect yield improvements of up to 16% based on recently announced data.
“As consumer-focused brands and retailers seek out ways to meet their sustainability goals and produce premium goods, Indigo provides a source of agricultural products that meets those needs,” continued Perry.
Indigo is a leader in the study and application of the plant microbiome in agriculture. Identifying beneficial microbes that naturally reside within plants, Indigo applies these to modern seeds to increase crop productivity and resilience in the face of stress. While Indigo’s initial work focused on water stress, the company is building out a broad product portfolio to address a range of environmental stresses, as well as pests and disease. Addressing nitrogen use is a top priority for Indigo research and development. Harnessing natural microbes and leveraging data-based agronomic practices, Indigo is working to improve nitrogen uptake and efficiency in row crops, with the goal of dramatically reducing nitrogen use in agriculture.
Indigo’s cutting edge microbiology, combined with its data-based agronomic support, benefits growers by allowing them to sustainably increase production while decreasing input costs — getting them more for every bushel. In the coming months, Indigo will begin production of Indigo CornTM and Indigo SoybeansTM across the United States. With these crops, Indigo will also provide growers a premium at harvest.
“With climate change an active threat, consumers are calling for a new environmental standard in the agriculture industry and beyond,” said Dr. Mehmood Khan, Indigo’s Board Director. “Indigo is responding to this call by developing a paradigm in which growers are able to respond to these consumer demands while increasing their profits.”
Adding to Indigo’s momentum, the company has recently opened its first international offices in Argentina and Australia. As growers around the world increasingly turn to Indigo’s seed treatments and digital technologies, the company intends to establish itself in key agricultural regions, acting as an in-market resource. In the coming months, Indigo will grow these teams, developing local expertise and accelerating overseas business.
“Together with growers across the globe, we have the potential to not only impact an industry, but to fulfill a larger vision of a world where nutritious food is transparently sourced and resources are conserved for future generations,” said Perry. “Indigo’s offer to growers is key to our path forward because it focuses on their own profitability, the foundation on which this vision rests.”