January 16, 2025

By Gerelyn Terzo, Global AgInvesting Media

In a flex for the agtech industry, private equity giant KKR is among the investors backing an innovative company. KKR is investing in smaXtec, a Graz, Austria-based provider of agri-tech solutions for the global dairy industry, alongside other backers including tech investor Highland Europe. The companies are keeping the financial details of the transaction close to the vest, except to say that existing shareholder Sophora Unternehmerkapital will maintain a minority stake in the business.

KKR, which has set its sights on $1 trillion in total assets under management by 2029, said it is making the investment primarily through its Next Generation Technology Growth Fund III, whose strategy is to back growth equity opportunities in the technology space. The PE giant has a proven track record of supporting tech-focused growth companies, having invested more than $21.6 billion in related investments over the past decade-plus amid a seasoned team of roughly three-dozen investment professionals boasting tech growth equity expertise.

smaXtex is behind a monitoring platform that revolutionizes dairy farming by delivering greater efficiency and animal health through its cutting-edge technology. This approach involves placing a proprietary sensor in the cow’s stomach, which in turn delivers real-time information on the animal’s health. smaXtex’s platform offers numerous advantages, including early disease detection, fertility monitoring with heat detection, and reduced birth-related complications, ultimately strengthening cow welfare and farm productivity. smaXtex’s client roster extends to operations across Europe, North America, Australia and New Zealand.

smaXtex customer Anne Marie Ryan from Co. Tipperary reportedly told Agriland, ““You know before you leave the house in the morning what is going on with the cows. With smaXtec, our days are more organized, with less stress and a more productive herd.”

As GAI News has previously reported, the private equity industry is sitting on a mountain of dry capital that is starting to come off the sidelines in 2025. In recent weeks, Baden Capital, a San Francisco, California-based private investment firm specializing in food, ag and water in the Western U.S. acquired plant protection specialist ORCAL, a Junction City, Oregon-domiciled company that designs and manufactures proprietary crop protection products to bolster yields.

Of the KKR investment, smaXtec CEO Stefan Scherer stated, “smaXtec has emerged as the leading dairy cow health management system, revolutionizing the industry. Our system empowers thousands of farmers worldwide to achieve a true triple win: enhanced animal welfare, reduced greenhouse gas emissions, and increased earnings. I am thrilled that KKR is able to ensure and accelerate our global growth, which has consistently doubled over the past five years. smaXtec consists of a competent and committed team that will achieve a lot in the future. I would like to thank them for our cooperation and look forward to the future.”

KKR Director in European Tech Growth Marta Szczerba said, “smaXtec’s technology has emerged as a disruptive force in the dairy industry, enabling farmers to significantly increase the efficiency of their operations. With a deeply engaged user base, high pace of product innovation and dedication to supporting its customers, smaXtec is well-positioned to continue to drive digitalization of the dairy sector globally. We are excited to support the next chapter of the company’s growth story.”

Highland Europe GP David Blyghton commented, “By providing real-time, actionable insights into herd health, smaXtec is empowering farmers across the globe to improve animal welfare, enhance productivity and drive operational sustainability. smaXtec’s vision and product leadership in AI-powered dairy health monitoring is driving rapid revenue growth and global customer adoption – we’re delighted to be part of the journey.”

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