July 31, 2024

By Gerelyn Terzo, Global AgInvesting Media

Monarch Tractor, a Livermore, a California-based startup behind the first 100 percent electric, autonomous smart tractor on the planet, dubbed MK-V, has raised $133 million in a Series C round. The fundraising, which according to the company is the biggest of its kind in agricultural robotics history, was co-led by tech-focused impact investor Astanor and the Foxconn Co-GP Fund, also known as the HH-CTBC Partnership, L.P. Other participants included At One Ventures, PMV and The Welvaartsfonds, bringing Monarch’s fundraising tally to over $200 million since its founding in 2017.

In addition to the electric tractor, Monarch’s Wingspan Ag Intelligence (WingspanAI) serves as the farm control center for the MK-V, which combined are designed to help farmers cut costs while increasing efficiency at key times like harvest season. Monarch Tractor plans to direct the proceeds from the round toward further developing its AI solution as well as growing its footprint domestically and globally, with a view to becoming financially solvent.

While tractors are a staple on the farm, they have been underutilized when it comes to robotics innovation and rewarding farmers, per Monarch Tractor. They built the first fully electric, driver-optional smart tractor to bolster farmer profits, offer a more sustainable solution for transportation and catapult ag innovation. With the deployment of over 400 MK-Vs, over 850 tons of harmful carbon emissions have been offset vis-à-vis 42,000 hours of tractor operations.

U.S. farm profitability has been on the decline, one of the sharpest drops of which occurred last year when U.S. net farm income sank by a steep 16 percent year-over-year to $155.9 billion, the worst performance in nearly two decades, according to the U.S. Department of Agriculture. Farms were hurt by a perfect storm of lower crop prices on an inflation-adjusted basis, higher production costs and the impact of trade wars. The ag industry has only scratched the surface of technology integration in segments such as automation, digital technologies and AI efficiencies, areas in which Monarch Tractor is pioneering innovation.

Monarch Tractor CEO and Co-Founder Praveen Penmetsa stated, “Driven by AI and electrification, agriculture has arrived as the next frontier for the energy transition and sustainability movement. Agriculture is our planet’s most important and overlooked sector, and those in the industry have faced significant challenges, including farm profitability, labor shortages, worker safety, government headwinds, data availability and scrutiny for sustainability demands. Monarch’s application of AI and introduction of a smart, electric platform will deliver robust social, economic and environmental returns to farmers.”

Monarch also revealed that local growers could capitalize on savings offered through the Golden State’s Clean, Off-Road Equipment Voucher Incentive Project (CORE) under which the MK-V tractor could qualify them for savings of up to nearly $70,000 off the retail price. CORE was launched to “commercialized, zero-emission, off-road equipment more accessible to users through point-of-sale subsidization,” according to the announcement. A key incentive for busy farmers is that Monarch has offered to do the paperwork on behalf of applicants, addressing a key pain point for growers who might not otherwise have time to complete the process.

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