OlsAro, a Swedish agtech startup focused on developing crop varieties resilient to environmental challenges, has raised €2.5 million (approximately US$ 2.7 million) in a pre-seed funding round. The funding will support the expansion of the company’s global presence, the further development of its AI enabled climate smart crop breeding platform, and the continued advancement of crop varieties designed to perform under increasingly harsh climate conditions.
The round was led by Future Food Fund and PINC, the venture arm of Paulig, with further participation from existing investors. The company’s early journey also received support from the founders of Oatly.
“The investment will enable us to expand our geographical reach, refine our proprietary tech platform and continue our journey towards discovery of crops that can thrive in challenging climate conditions, boosting food security and resilience in the global food system.”
AI Platform Aims to Tackle Climate-Induced Agricultural Decline
OlsAro aims to tackle the pressing global challenge of feeding a growing population in the face of declining agricultural productivity, as the global food demand is expected to increase by 50% by 2050 (as per the World Resources Report). The company’s solution focuses on the development of climate-adapted crops, achieved through its proprietary AI-enabled forward genetics platform. OlsAro’s innovative technology enables faster crop development, aimed at increasing resilience against environmental stresses.
According to the company, their first product, a salt tolerant wheat, has demonstrated a 52% yield increase over a moderately salt tolerant variety when tested in saline conditions in Bangladesh. This innovation provides a solution for cultivating land previously rendered unfarmable due to high salinity, allowing farmers to use this land during the dry season and improve household incomes while contributing to local food availability.
Reclaiming Degraded Land
Wheat remains one of the most important global crops, forming a staple part of diets across the world. However, its supply has been under pressure in recent years from the COVID-19 pandemic, geopolitical tensions in regions such as Ukraine and the Middle East, and the growing impact of climate change. One of the key threats to wheat production is soil salinity, which now affects over 830 million hectares globally. The issue is being intensified by climate-driven factors such as flooding, cyclones, and the use of saline water for irrigation.
OlsAro’s salt tolerant wheat variety addresses these challenges by making saline-affected land viable for cultivation. This not only increases available farmland but also strengthens the food supply in vulnerable regions.
Accelerated Crop Development Through AI and Genetic Diversity
The company’s AI-powered platform allows for the development of wheat varieties at a pace three times faster than traditional breeding techniques. This system is underpinned by more than ten years of research and a proprietary wheat collection that exhibits extensive genetic diversity. The platform enables the identification of traits that support wheat growth in adverse conditions, boost nitrogen efficiency, and may enhance the nutritional value of the crop.
“Our platform, enriched by a decade of research and a unique genetic diversity, empowers us to introduce wheat varieties designed to thrive under adverse conditions. This funding is a catalyst for us to broaden our technological capabilities and extend our impact on a global scale. It’s an exciting time for OlsAro, as we harness AI and plant biotechnology to forge a path towards sustainable food systems that can withstand the challenges ahead.”
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Global Field Trials and Future Market Expansion
OlsAro has already established a commercial agreement for the Bangladesh market, where its salt tolerant wheat is being deployed. Field trials are currently ongoing in several other countries, including Pakistan, Kenya, Oman, and Nepal. The company’s next phase involves targeting markets such as Australia and India, where salinity degradation of farmland poses a growing concern.
Investor Collaboration to Drive Scalable Solutions
Jaap Strengers, Managing Partner at Future Food Fund, commented on the strategic value of this investment, highlighting the role of investor collaboration in supporting OlsAro’s path to broader scalability. The combination of financial support and strategic expertise is expected to accelerate the company’s development of agricultural solutions that contribute to food system resilience on a global scale.
As climate-related threats to agriculture continue to grow, OlsAro’s efforts to create robust crop varieties through AI and genetic research present a path forward for regions struggling with soil degradation and food insecurity.
