According to reports, agritech startup Grow Indigo has raised $10 million from the UK’s development finance institution and impact investor British International Investment (BII).

The company says that it would deploy fresh capital towards accelerating the growth of its sustainability programs in India.

Established in 2018, the company specializes in carbon farming and advocates for sustainable practices like direct-seeded rice and no-tillage farming. These methods improve soil quality, decrease erosion, enhance water efficiency, and lessen the reliance on manual labor.

Grow Indigo has stated that by 2030, carbon farming could emerge as one of India's major agricultural export commodities, potentially providing billions in extra income for smallholder farmers.

Usha Barwale Zehr, Executive Director of Grow Indigo, “The investment will accelerate farmer enrollment and scale carbon farming initiatives of the company.”

“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,” adds Usha.

Grow Indigo focuses on researching and developing, producing, processing, and marketing biological products, as well as connecting farmers to voluntary carbon markets through farmer enrollment, advisory services, monitoring, reporting, and verifying regenerative agricultural practices.

India's carbon farming market is presently in its initial phases, with agriculture-focused carbon credit initiatives representing a minor portion of the total carbon market. As of December 2023, agriculture accounts for just 0.2 percent of the 321 million metric tons of carbon credits issued in India. In contrast, the renewable energy sector received the bulk of the credits, approximately 89 percent.

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With around 170 million hectares of agricultural land, India’s capacity for carbon sequestration is significant.