Grow Indigo, an agritech startup focused on sustainable farming, has raised US$ 10 million (approximately INR 830 million) from British International Investment (BII), the UK’s development finance institution and impact investor. The funding is set to accelerate Grow Indigo’s carbon farming initiatives, helping smallholder farmers improve their income while addressing climate change.
Grow Indigo Aiming for Large-Scale Impact
Grow Indigo aims to make carbon farming become one of India’s most valuable agricultural exports by 2030, with the potential to generate billions in additional income for smallholder farmers while simultaneously reducing agricultural emissions. With four carbon farming projects already underway, the company expects the first batch of carbon credits to be issued soon and has set an ambitious target of enrolling millions of farmers and acres within the next two years.
The company’s carbon farming model focuses on promoting sustainable agricultural techniques, such as direct seeded rice and no-tillage farming. These methods not only reduce carbon emissions but also improve soil health, prevent erosion, preserve biodiversity, enhance water efficiency, and reduce manual labor—particularly benefiting women farmers.
Dr. Usha Barwale Zehr, Executive Director of Grow Indigo, emphasized the importance of regenerative agriculture in enhancing soil health and securing better livelihoods for millions of farmers. She stated that the funding will facilitate faster farmer enrolment and the expansion of carbon farming projects.
“With this funding, we will accelerate farmer enrollment and scale carbon farming initiatives. Maintaining integrity of the sustainability outcomes, by way of carbon credits and Scope 3 emission reductions, is of utmost importance to us and will bring maximum value to farmers with our science-backed MRV offerings. We are thrilled to be partnering with BII to pursue these critical objectives for India’s sustainability objectives.”
BII’s Managing Director and Head of Asia, Srini Nagarajan, highlighted the significance of supporting smallholder farmers, particularly those cultivating staple crops such as rice, wheat, and maize.
“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 practices.”
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New Revenue Streams for Farmers
By adopting regenerative agricultural practices, farmers participating in Grow Indigo’s programs can generate soil carbon credits, which are then sold to corporations looking to meet their sustainability targets. A significant share of the revenue from these credits goes directly to the farmers, providing them with a new and sustainable income stream.
Jennifer Kaul, Deputy Director of Investments at the British Deputy High Commission in Mumbai, praised India’s commitment to regenerative agriculture, emphasizing its importance for both food security and the economy.
“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.”
The $10 million investment from BII marks a major step in scaling Grow Indigo’s carbon farming initiatives across India. By enabling faster farmer enrolment, expanding sustainable practices, and ensuring the integrity of carbon credits, the funding supports both climate resilience and rural livelihoods. As Grow Indigo moves forward with its ambitious plans, this investment positions the company to play a crucial role in reshaping India’s agricultural sector driving economic gains for farmers while advancing the country’s sustainability goals.
