Food giant Paulig’s VC arm invests in AI-driven soil analysis – "A missing puzzle piece"

Maintaining stable crop yields while reducing the use of artificial fertilisers and pesticides is one of the major challenges facing agriculture.

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"With various drivers and increased regulations within the EU and UK, where there is a push to reduce chemical usage, we need to find sustainable alternatives. Elaniti's technology is a breakthrough for sustainable farming," says Rosemari Herrero, investment manager at Pinc.

The British company has developed a technology that analyses the microbial composition of soil, specifically the bacteria and fungi living within it. It’s a tool that has been missing from farmers' toolkits.

"Healthy soils are the key to sustainable food systems and climate resilience. We are impressed by Elaniti's data-driven and AI-based approach to understanding the soil microbiome, which can provide scientifically backed decision-making tools for farmers," says Herrero.

Pinc is participating in Elanti's funding round alongside Biotope by VIB, headquartered in Nevele, Belgium, and Planetary Impact Ventures, based in Humlebæk, Denmark. Elaniti has raised approximately 1.5 million EUR in this round.

Providing practical advice – not just analysis

Scott Jarrett, CEO, and his co-founder, Utkarsh Vaidya, both have agricultural experience. They started Elaniti by speaking to farmers to understand their real challenges.

"We wanted to avoid being a hammer looking for a nail. We began by understanding the problem before developing a solution," says Jarrett. What he heard from farmers was that they struggled to explain the varying results of their harvests.

"A farmer growing wheat in one field might achieve a target yield one year but see lower results the next and they often can't explain why it happens; they just conclude afterward whether it was a good or a bad year," he says.

By analysing the soil using machine learning, Elaniti can provide precise guidance on which crops to plant and where it's safe to reduce the use of fertilisers – without negatively impacting the harvest.

Elaniti's ability to provide concrete recommendations was one of the factors that made the company stand out to Pinc.

"There are some other large companies that conduct these soil analyses, and do a mapping of the soil's microbiome. But they don't have the solutions to be able to give recommendations about what that means or how farmers can adjust their practices to better make use of what's there," says Herrero.

Revenue from day one

With its new capital, Elaniti plans to hire more staff and prepare for a product launch this autumn.

Although their AI models are still under development, the company already has several strategic customers in the agricultural sector. However, they do not sell their services directly to individual farmers but instead focus on companies that already have relationships with farmers. Many farmers already work with agronomists or companies that offer various digital services.

"Farmers are customers of our customers, so it's a B2B2C solution. We want to integrate into the existing systems farmers use to achieve maximum impact as quickly as possible," explains Jarrett.

Currently, Elaniti is focusing on the UK and German markets, but the technology could eventually become available to Swedish farmers as well.

"Their commercial progress shows that they are addressing a central challenge in agriculture. We are impressed by the team's ability to generate revenue from day one and believe that Elaniti will play a key role in the transition to healthier soils," says Herrero.

Jarrett also highlights the importance of having the right type of investors on board: "It was important for us to work with investors who believe in our long-term vision. They all offer something unique – some have strong contacts in the biotech industry in Europe, while others have connections to large companies that share our goals," he says.