In response to the escalating challenges posed by climate change on rice cultivation, Mitti Labs, a climate-tech startup headquartered in New York and Bengaluru, has successfully raised $9.5 million in a Series A funding round. This investment was led by Aramco Ventures, the venture capital arm of Saudi Aramco, marking its inaugural investment in an Indian startup. Other participants in the round included Lightspeed India, Godrej Industries Group, Cisco, Francis Family Fund, and Volta Circle. This latest funding brings Mitti Labs’ total capital raised to $12.5 million, following a $3 million seed round in July 2024.
Rice serves as the primary food source for over half of the global population. However, traditional rice farming methods are notably water-intensive and contribute significantly to methane emissions due to continuous field flooding. Recognizing these environmental concerns, Mitti Labs has developed a platform that integrates satellite imagery, artificial intelligence, and on-ground operations to assist farmers in reducing water usage and methane emissions.
Since initiating its programs in 2023, Mitti Labs has expanded its reach from approximately 8,000 farmers in its first season to over 100,000 farmers across various Indian states. The company’s GeoAI platform utilizes synthetic aperture radar (SAR) imagery from both commercial and public satellites, with resolutions ranging from 50 centimeters to 10 meters. This satellite data is combined with extensive field measurements collected by Mitti Labs’ teams, enabling the creation of digital twins for individual rice fields. These digital representations allow for precise monitoring of crop conditions, water usage, and methane emissions across numerous smallholder farms, each averaging about one hectare in size.
Farmers participating in Mitti Labs’ programs adopt alternative irrigation practices that have been shown to reduce water usage by approximately 40% and methane emissions by over 50%, all without compromising crop yields. Additionally, these sustainable practices generate carbon credits, providing farmers with an extra income stream. Mitti Labs generates revenue through the sale of these carbon credits and by offering its GeoAI platform to clients such as carbon marketplace Cool Effect, rice producer Ebro Foods, and agricultural company Syngenta. These organizations utilize Mitti Labs’ data and analytics to enhance water resilience within their supply chains.
The investment from Aramco Ventures underscores the growing recognition of the need for sustainable agricultural practices, particularly in regions heavily reliant on rice cultivation. By leveraging advanced technologies and fostering partnerships, Mitti Labs is well-positioned to drive significant environmental and economic benefits for smallholder farmers across Asia. This development highlights the critical role of innovation in addressing the dual challenges of food security and climate change.
