OlsAro Raises 5 Million Euros for Climate-Resilient Grains

The Swedish AgTech company OlsAro has closed a seed funding round of 5 million euros. The round is led by Industrifonden and Nordic Foodtech VC. The Gothenburg-based startup uses artificial intelligence and modern plant breeding to develop grain varieties that are designed to be more resistant to salt stress, heat, and drought. The capital will be used primarily to fund the further development of the SeedAX platform, international field trials, and the market launch of a salt-tolerant wheat variety.

Total funding rises to 7.5 million euros

In addition to the two lead investors, Industrifonden and Nordic Foodtech VC, existing investors Future Food Fund, PINC (the venture capital arm of food company Paulig), AgFunder, and GU Ventures are also participating in the financing. OlsAro had already completed a pre-seed round of 2.5 million euros in April 2024. With the new capital, the total funding raised to date rises to approximately 7.5 million euros. The company plans to use the funds to translate its research findings into commercial seed products and to expand its collaboration with international seed producers.

Climate Change Poses New Challenges for Grain Farming

Rising temperatures, longer dry spells, and increasing soil salinity are posing growing challenges for agriculture worldwide. According to OlsAro, approximately one-tenth of the world’s arable land is already affected by salinization. This is particularly problematic for cereal cultivation, as many conventional varieties are sensitive to elevated salt concentrations. This can result in lower yields and reduced agricultural usability of affected land. OlsAro is therefore developing genetic traits designed to make cereal crops more resilient to such environmental conditions. The initial focus is on wheat, one of the world’s most important food crops.

SeedAX Combines Plant Genetics and Artificial Intelligence

The technological foundation is the company’s proprietary SeedAX platform. It combines genetic data, AI-supported analytical methods, and modern breeding technologies. The goal is to identify genetic traits that make plants more resilient to high salt concentrations or extreme temperatures, for example. The identified traits are then validated and integrated into high-performing breeding lines that can serve as the basis for commercial seed programs. OlsAro is thus pursuing a platform-based approach. Rather than developing only individual grain varieties, SeedAX is designed to be reused repeatedly for different traits, plant species, and regional growing conditions. To this end, the company collaborates with seed producers who can incorporate these genetic traits into their own breeding programs.

Up to 41 percent higher yields in salt-stressed soils

OlsAro reports initial results in the development of salt-tolerant wheat varieties. According to the company, in trials conducted in Bangladesh, a wheat variety developed by OlsAro achieved yields up to 41 percent higher under saline conditions than a comparison variety already considered moderately salt-tolerant. This figure refers to the specific trial conditions studied and cannot be readily extrapolated to other growing regions. To evaluate performance under varying climatic and agricultural conditions, OlsAro is now conducting field trials in several international markets.

New Research on Drought and Nitrogen Efficiency

In addition to salt and heat tolerance, OlsAro plans to integrate additional traits into its development platform in the future. Research programs are planned on drought tolerance and the more efficient use of nitrogen. The latter could help develop cereal varieties that make better use of available nutrients and, under certain conditions, require less fertilizer. However, whether such benefits can actually be achieved in agricultural practice must first be demonstrated through further research and field trials. In the long term, OlsAro also plans to expand its technology to additional cereal crops. These include, among others, rice. This could enable SeedAX to be used in the future for several of the world’s most important staple foods.

Collaboration with International Seed Companies

A key component of the growth strategy is collaboration with established seed companies. OlsAro does not intend to market its genetic developments exclusively through its own seed products but also aims to make the technology available for use in the breeding programs of partner companies. The seed funding is therefore intended to expand commercial activities in addition to supporting international field trials. The company is also investing in the further development of AI-based trait identification and the expansion of its intellectual property portfolio. CEO Elén Faxö sees this as the next step following several years of research and validation. The goal is to develop SeedAX into a platform that seed companies can repeatedly use to address various climatic challenges.

Investors are betting on scalable plant breeding

According to investment manager Sara Frykstrand Ångström, the combination of scientific development, initial field trial results, and existing partnerships with seed companies was particularly decisive for Industrifonden. With SeedAX, OlsAro can build a scalable technology for developing climate-resilient cereal varieties. With the additional 5 million euros, the company is now focusing on translating its research into commercial applications. It remains to be seen whether the results obtained so far will hold up under different growing conditions and whether the developed traits can be successfully integrated into marketable seed varieties. International trials and collaboration with seed producers are expected to lay the groundwork for this in the coming years.