October 9, 2024

By Gerelyn Terzo, Global AgInvesting Media

In what’s shaping up to be a massive year of growth, xFarm Technologies, a Manno, Switzerland-based technology company focused on digitizing the agribusiness sector, has raised an impressive €36 million (US$39.4 million) in a Series C funding round. Led by technology investment firm Partech through its Impact Growth Fund, the round also extended to London-based venture capital firm Mouro Capital as well as Swisscom Ventures, United Ventures and all of the company’s past institutional investor backers. The latest fundraising comes on the heels of a €17 million (US$18.6 million) Series B round in 2022 and a €3 million (US$3.2 million) round in 2019, bringing xFarm’s total fundraising tally to €56 million (US$61.2 million).

xFarm Technologies plans to direct the proceeds toward strengthening its pan-European foothold as well as an expansion push across Latin America, India and the U.S. markets. The company expects to enhance its service and support for the ushering in of regenerative agriculture solutions powered by artificial intelligence (AI) technologies for data analysis. Through its Farm Management Information System (FMIS) digital platform, xFarm currently supports over 450,000 farmers — mostly in Switzerland, Italy, Spain, France, Germany, Poland and the U.K. — representing 100-plus supply chains and 7 million hectares (17.2 million acres) of land globally.

Partech launched its impact fund at year-end 2023 with a target size of €300 million (US$328.1 million). “We will invest in B2B companies that have reached at least €10M (US$10.9 million) of revenues, transforming deeply the value chains they operate in. Our thematic approach prioritizes businesses which have a strong impact on the industrial, agri-food, environment and inclusion value chains,” Partech Impact General Partner Arnaud Minvielle said.

Earlier this year, xFarm announced the integration of Spain’s Greenfield Technologies and Paris-based SpaceSense to strengthen its market position in regenerative agriculture and geospatial AI (GeoAI), the latter of which represent tools that harnesses both geographical data and AI tech. Since then, xFarm says it has “cemented its position as a European leader in the digitalization of the agri-food sector.”

In recent months, xFarm also partnered with Latin American agribusiness company Bunge, which recently launched a regenerative ag program, to collect data from sensors and satellites via AI-powered systems to help farmers make agriculture more sustainable. Through this collaboration, xFarm plans to digitize hundreds of thousands of hectares of land in Brazil by 2026 as it grows its international team in South America.

xFarm Technologies CEO Matteo Vanotti stated, “This is a time of profound change and major challenges for the global agri-food industry. At xFarm Technologies, we want to continue to provide the most advanced and effective tools to navigate this landscape, with further investment in R&D and innovation, cutting-edge technologies in climate intelligence and AI for agronomic support, and a focus on sustainability and regenerative agriculture.”

As a new backer of the company, Mouro Capital has a role in the creation of a new fintech and insurtech division at xFarm Technologies to support its risk management and lending capabilities. The company’s latest backers also weighed in:

Mouro Capital General Partner Manuel Silva Martínez said, “As traditional fintech investors, we feel that xFarm Technologies’ vision to digitalize the agricultural sector concurs with their product being a great entry point to serve their clients’ financial needs.”

Partech general partners Rémi Said and Arnaud Minvielle said, “We believe that xFarm Technologies, with its best-in-class technological horizontal solution, its innovative route to market, its deep understanding of the farmers’ needs and its global footprint, has all the elements to become the global leader in farm management software and a critical player in the agricultural value chain transition. We are very proud and honored to embark on this journey with xFarm Technologies and its very talented team.”

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