Grow Indigo raises m from British International Investment

Agritech firm Grow Indigo has raised $10 million from British International Investment (BII), the UK’s development finance institution and impact investor. Established in 2018, Grow Indigo is leading the carbon farming revolution with over 2.5 million acres of smallholder farmland already enrolled across seven states. This strategic funding will accelerate the expansion of Grow Indigo’s transformative sustainability programs across India, the company said in a statement.

The company promotes sustainable techniques such as direct seeded rice and no-tillage farming that deliver multiple benefits such as enhanced soil health and reduced erosion, preservation of biodiversity, improved water efficiency and reduced manual labour particularly benefiting women farmers

These interventions, which are also known as regenerative agricultural practices, are crucial for decarbonizing rice, wheat and maize production across India.

Agriculture contributes 14 per cent of India’s total greenhouse gas emissions—over 400 million tonnes of CO₂ annually.

By encouraging farmers to adopt regenerative agricultural practices, Grow Indigo is creating a revolutionary income stream through soil carbon credits and sustainable produce for Scope 3 reductions. These credits, generated from carbon removals as well as greenhouse gas emissions reductions, are sold to corporations who seek to support resilient agri-food supply chains while meeting their sustainability goals. Majority of carbon credit revenue goes directly to participating farmers, improving their livelihoods.

With robust measurement, reporting, and verification (MRV) systems, Grow Indigo’s carbon programs offer corporations a transparent, high-impact option to meet sustainability goals while supporting smallholders and creating healthier rural livelihoods. The company also partners with food and fashion companies to facilitate sustainable sourcing and reduce their supply chain emissions.

With four carbon farming projects at different stages of development and the first carbon credits expected to be issued soon, Grow Indigo is positioned for rapid growth. The company aims to enrol millions of farmers and acres within the next two years.

“Regenerative agriculture is the future of farming, not only for improving soil health, conserving water but also for creating improved livelihoods for millions of smallholder farmers,” said Usha Barwale Zehr, Executive Director of Grow Indigo. “With this funding, we will accelerate farmer enrolment and scale carbon farming initiatives.”

Srini Nagarajan, Managing Director and Head of Asia at BII, said: “Rice, wheat, and maize are staple foods in India, cultivated by numerous smallholder farmers who are vulnerable to the impacts of climate change. Through our innovative pools of capital, we are proud to support pioneering businesses like Grow Indigo that address adoption barriers by harnessing the potential of carbon markets. This initiative not only reduces carbon emissions but also enhances farmers’ climate resilience and increases their incomes. This is aligned with the Government’s policies to support regenerative agri practices.”

Jennifer Kaul, Deputy Director, Investments, South Asia at the British Deputy High Commission in Mumbai, said: “India’s strong resolve in the adoption of regenerative agricultural practices is noteworthy. The agricultural sector plays a key role, both for food security and as a valuable export commodity. The UK government is committed to investments that support our climate and sustainability goals, not least in the agricultural sector. British International Investment’s support to Grow Indigo is a welcome step in this direction and reflects the deep partnership between our nations, which is underpinned by growth and sustainability.”