Swedish agtech startup OlsAro secures €2.5M to develop climate-resilient wheat with AI technology

OlsAro, a Swedish agtech startup headquartered in Gothenburg, has raised €2.5 million in seed funding led by Future Food Fund and Paulig’s venture arm, PINC. The round of financing for the business involved investment from AgFunder, FLORA Ventures, and Mudcake, as well as participation from previous investors.

OlsAro specializes in developing new wheat varieties using AI-enabled crop development to improve yield and adapt to challenging environmental conditions such as salt, heat, and drought. A salt-resilient wheat invention by this new business has presented a yield improvement of 52% more than typical variants during testing in Bangladesh.

The newly acquired funds will be used for staff expansion, tech development, and market entry of their first offering in regions affected by agricultural land degradation due to excessive salt levels.

The global food supply is under pressure due to climate change, population growth, and shrinking arable land. A significant percentage of the world’s cropland is affected by salinity, with approximately 830 million hectares currently impacted.

Aiming at improving food security

The new wheat varieties developed by OlsAro could allow farmers to cultivate on previously unusable land during dry seasons and improve food security worldwide.

The AI-powered genetic crop breeding platform the startup employs significantly reduces the time it takes to create new wheat varieties by a factor of three compared to conventional techniques. Drawing from a decade of research and an exclusive assortment of wheat varieties, this repository facilitates the discovery of characteristics tailored to endure extreme weather conditions, boost nitrogen utilization, and amplify the nutritional value of wheat.

In addition to salt tolerance, the company is also researching heat-tolerant and nitrogen-efficient wheat varieties.

With this investment, OlsAro plans to expand its impact by targeting markets in Australia, India, and other regions where agricultural land is degraded by salinity.

Their results are impressive. Food security matters to all of us, and the OlsAro team can speed up solutions for wheat in several areas with their platform, and also for other crops in the future.

Marika King

“This funding enables us to continue our mission of developing climate-resilient crops and providing farmers with sustainable solutions for the future,” Elén Faxö, CEO of OlsAro, said.