Klim Secures $22 Million to Transform Regenerative Agriculture Financing

Klim, an innovative insetting solutions provider, has successfully raised $22 million in a Series A funding round led by BNP Paribas, one of Europe’s largest banks. This significant investment also saw participation from a variety of notable investors, including Earthshot Ventures, Rabobank, AgFunder, Norinchukin Bank, Achmea Innovation Fund, Ananda Impact Ventures, and Elevator Ventures. The influx of capital will enable Klim to enhance its international presence and introduce a new financial services layer to its platform, aimed at facilitating the transition to regenerative agriculture.

Founded in 2020, Klim has made strides in helping food companies decarbonize their agricultural supply chains through insetting projects. Unlike traditional carbon offsetting, which allows companies to purchase credits to offset their emissions, insetting focuses on reducing emissions directly within a company’s own value chain. This approach is crucial for addressing the significant challenge of Scope 3 emissions, which account for nearly 90% of the carbon footprint for many food and beverage companies. These emissions are particularly challenging to manage, as corporations generally lack direct control over the agricultural practices of their suppliers.

Klim’s digital platform provides essential tools for farmers, enabling them to plan, execute, and finance their transition to regenerative practices. This shift is vital not only for reducing emissions but also for improving soil health, which is increasingly recognized as a critical asset for both agricultural productivity and financial stability. CEO and co-founder Robert Gerlach emphasizes that the economic health of banks, farmers, and food companies is intricately linked to soil health. As soil degradation poses risks to biodiversity and food production, addressing these challenges is imperative for the long-term viability of the agricultural sector.

The new funding will allow Klim to introduce a financial services layer to its platform, which aims to alleviate one of the major barriers to transitioning to regenerative agriculture: access to capital. Historically, farmers have faced significant financial and operational risks when shifting practices in the field. By partnering with banks like BNP Paribas, Klim can provide farmers with the necessary funding to support their transition efforts. Gerlach notes that this partnership aligns with the banks’ interests in evaluating and appreciating important assets, such as soil, which underpins agricultural success.

Maha Keramane, head of BNP Paribas’ Positive Impact Business Accelerator, expressed enthusiasm for Klim’s mission, stating, “Klim’s innovative platform and approach to scaling regenerative agriculture are perfectly aligned with our commitment to financing solutions that mitigate climate change, make ecosystems more resilient, and improve people’s livelihoods.” This sentiment underscores the growing recognition of the importance of sustainable agricultural practices and the role financial institutions can play in supporting this transition.

Klim’s platform has already attracted over 3,500 farmers across more than 700,000 hectares of farmland in Germany, which represents about 5% of the country’s total agricultural land. Among its corporate clients are major industry players like Nestlé, Kaufland, and Aryzta. The new capital will not only enhance the existing features of the Klim platform but will also facilitate its expansion into other parts of Europe, further broadening its impact.

Gerlach revealed that the Series A round was “massively oversubscribed,” indicating strong interest from investors who recognize the potential of Klim’s innovative approach to insetting. As the company prepares to scale its operations and introduce new functionalities to its platform, it remains committed to its core mission of supporting farmers and food companies in their journey towards regenerative agriculture. With the backing of prominent financial institutions and a growing network of users, Klim is poised to play a transformative role in reshaping food supply chains on a global scale.

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