Grow Indigo, an agritech startup focused on regenerative agriculture and carbon farming, has raised $10 million in funding from British International Investments (BII), the UK’s development finance institution.
The funding will help expand the startup’s sustainability initiatives, which already cover 2.5 million acres of farmland across seven Indian states, and accelerate its carbon credit program, which is aimed at benefiting smallholder farmers.
“Regenerative agriculture is the future of farming, not just for improving soil health and conserving water, but also for creating better livelihoods for millions of smallholder farmers,” said Usha Barwale Zehr, Executive Director of Grow Indigo.
“With this funding, we will accelerate farmer enrollment and scale carbon farming initiatives to make agriculture more resilient and sustainable.”
A business model rooted in carbon credits
Grow Indigo promotes low-emission farming techniques, such as direct-seeded rice, no-tillage farming, and biological inputs that reduce soil degradation, enhance biodiversity, and improve water efficiency. These sustainable methods not only increase agricultural productivity but also generate soil carbon credits—tradable units representing carbon capture and emission reductions.
These carbon credits, generated through both carbon removals and reduced greenhouse gas emissions, are then sold to corporations aiming to decarbonize their supply chains.
With growing corporate commitments to Scope 3 emission reductions, firms in food, fashion, and consumer goods sectors are turning to initiatives like Grow Indigo’s to offset their environmental footprint.
Growing market for carbon farming
As the carbon offset market expands, demand for verified and science-backed agricultural carbon credits is increasing. Grow Indigo has developed a robust measurement, reporting, and verification (MRV) system to ensure transparency in carbon credit generation.
The startup is working to scale its impact across millions of farmers in the next two years.
Srini Nagarajan, Managing Director and Head of Asia at BII, highlighted the broader climate and economic benefits of supporting agritech ventures like Grow Indigo.
“Rice, wheat, and maize are staple crops for millions of Indian farmers, who are also among the most vulnerable to climate change. By supporting businesses that harness the potential of carbon markets, we are not only reducing emissions but also helping smallholders increase their incomes and build climate resilience,” he said.
The UK government has emphasized sustainable agriculture as a priority, with Jennifer Kaul, Deputy Director, Investments, South Asia at the British Deputy High Commission in Mumbai, saying that BII’s investment reflects the “deep partnership between the UK and India” on climate and sustainability.
Scaling sustainability across Indian agriculture
Founded in 2018, Grow Indigo operates at the intersection of agriculture, climate science, and finance, working with scientists, agronomists, and farmers to implement sustainable farming techniques.
The startup last raised $8 million in funding from Indigo Ag and Mahyco, and has since expanded operations across 16 states, with a network of over 2,000 distribution partners and 600 on-ground agronomy experts.
