OlsAro Raises €2.5 Million Seed Round to Expand AI-Enabled Climate Smart Crop Breeding Platform

Swedish agtech startup, OlsAro, has successfully closed a €2.5 million seed funding round, led by Future Food Fund and PINC, the venture arm of Paulig. Additional investment came from AgFunder, FLORA Ventures, Mudcake, and existing investors, including the founders of Oatly.

OlsAro focuses on developing crop varieties resilient to environmental stressors. With global food demand projected to surge by 50% by 2050, and agricultural productivity declining due to climate change and diminishing arable land, the need for innovative solutions is urgent.

The startup’s pioneering approach utilizes a proprietary AI-enabled forward genetics platform. This platform accelerates the development of climate-adapted crops, addressing the challenge of food security in the face of climate volatility.

One of OlsAro’s flagship products is a salt-tolerant wheat variety. In trials conducted in Bangladesh, this wheat demonstrated a remarkable 52% increase in yield compared to moderately salt-tolerant varieties, enabling cultivation in saline conditions that were previously deemed unfarmable.

Elén Faxö, CEO of OlsAro, emphasized the significance of this investment in expanding the company’s reach and advancing its technology platform. She stated, “Our goal is to discover crops capable of thriving in challenging climate conditions, thereby enhancing food security and resilience in the global food system.”

Wheat, a staple food for billions, has faced unprecedented threats in recent years from climate change, pandemics, and geopolitical tensions. Moreover, over 830 million hectares of arable land worldwide are affected by salinity, further limiting agricultural productivity.

OlsAro’s salt-tolerant wheat offers a promising solution, allowing farmers to cultivate previously unusable land during dry seasons. This not only increases incomes for farming families but also contributes to local food supplies, addressing the pressing issue of food security.

The AI platform developed by OlsAro enables the rapid development of wheat varieties, three times faster than traditional methods. Leveraging over a decade of research and a diverse genetic pool, the platform identifies traits suited to withstand adverse climatic conditions, improve nitrogen efficiency, and potentially enhance the nutritional value of wheat.

Henrik Aronsson, CTO of OlsAro, expressed excitement about the company’s trajectory, stating, “Our AI and plant biotechnology pave the way for sustainable food systems resilient to future challenges. This funding will enable us to broaden our technological capabilities and extend our impact globally.”

OlsAro’s commercial activities are already underway in Bangladesh, with ongoing field trials in Pakistan, Kenya, Oman, and Nepal. The company plans to expand its reach to Australia, India, and other regions grappling with salinity-induced land degradation.

Jaap Strengers, Managing Partner at Future Food Fund, underscored the investors’ commitment to supporting innovative solutions for resilient food systems. He affirmed, “We are excited to join OlsAro on their journey, as they lead the way in agricultural innovation with global scalability and impact.”

Founded as a spin-out from Lund University and the University of Gothenburg in Sweden, OlsAro has garnered support from prominent investors, including GU Ventures, Vasa Angels, Öste Ventures, and Kaponjären.

(image: Francesco Rucci & Francesco Marinelli)