by Lynda Kiernan
The Farm Equipment Sector (FES) of the US$20.7 billion Indian conglomerate Mahindra Group has invested US$4.3 million in Swiss agtech firm Gamaya SA in exchange for an 11.25 percent stake in the company.
This investment is part of a US$7.5 million Series B funding round for Gamaya that also included ICOS Capital VI Partners and certain existing investors in the company.
“We strongly believe in partnering, and having a strategic investor like Mahindra and Mahindra will help open new doors and develop our ability to combine our technological expertise with the agronomic and market understanding of strategic partners,” said Yosef Akhtman, CEO of Gamaya.
Gamaya was founded in 2015 by Dragos Constantin, Igor Ivanov, and Yosef Akhtman and is a spin-off from École Polytechnique Fédérale de Lausanne (EPFL), a leading global research institute and university in Lausanne, Switzerland, that was ranked 11th in the world for engineering and technology by the Times Higher Education World University Ranking of 2017.
The company uses a unique collective of patented hyperspectral imaging technology, drone capabilities, artificial intelligence (AI), and machine learning, that together are the world’s most advanced solution for diagnostics of farmland.
Through its platform, the company can measure and predict the health of a field by detecting and measuring the spectral bands of light reflected by a crop, which are reflected differently by crops affected by disease or deficiencies. This ability to detect changes in plant physiology not noticeable by the naked eye, together with the company’s analysis of weather conditions and other contributing factors, improves both the efficiency and sustainability of farming operations.
“Agriculture is a complex industry that is undergoing rapid transformation towards efficiency and sustainability,” said Yosef Akhtman, co-founder and CEO, Gamaya. “The success of this process will undoubtedly rely on the collaboration between established industry leaders and innovators. We are excited to have Mahindra as an investor and strategic partner to help Gamaya bring the benefits of advanced technology, including hyperspectral imaging and machine learning, to both industrial farmers and smallholders around the world.”
Mahindra said that this deal will enable it to develop and deploy next-generation precision and digital farming technologies, and to improve the accessibility to such solutions to the global farming community, in line with its Farming 3.0 strategy.
“With agriculture increasingly becoming technology-intensive, we at Mahindra are investing in future ready technologies to provide complete solutions to the global farming community,” said Rajesh Jejurikar, president, Farm Equipment Sector Mahindra & Mahindra. “Our strategic association with Gamaya will enable us to develop and deploy next-generation farming capabilities such as precision agriculture and digital farming technologies. With this partnership, we expect to set new benchmarks in farming and its related services.”
Mahindra, which is by all accounts is a far-reaching presence in global agriculture, has had a dynamic few years during which the group has made deals through its various units and companies that ensure diversification along multiple agricultural value chains.
In November 2014 the group made its first foray into the dairy sector with an Rs 500 cr (US$80 million) deal to acquire its first dairy processor and a foothold in the country’s $58 billion industry, and in October 2015 the group expanded into the agricultural machinery space with the acquisition of a 33 percent stake in Mitsubishi Agricultural Machinery Co. (MAM) for US$25 million.
More recently, the group expanded into the e-commerce space with Mahindra Univeg – a 60:40 joint venture between Mahindra Agri Solutions and Belgium’s Univeg (Greenyard Foods) that announced an investment in Mera Kisan, an e-commerce startup that sources fresh fruit and vegetables for sale to consumers.
Then, in December 2016, Mahindra & Mahindra Ltd. signed a definitive agreement to acquire a 60 percent stake in the Netherlands-based global fruit distribution company, OFD Holding, through its subsidiary, Mahindra Agri Solutions, for approximately US$5.3 million.
This tie-in with Gamaya, which operates in Brazil. India, Ukraine, and other major agricultural markets, strengthens Mahindra’s international presence in agtech, at the same time as the company is focusing on its farm equipment business.