Updated April 26, 2023:
In an April 23 note, Upstream Ag Insights Industry Analyst Shane Thomas shared his thoughts on the CropX Series C Funding Round:
Two things stood out to me in the release:
- The emphasis is that the funds will be used for “the acquisition of companies.”
- Reinke Irrigation was one of the investors.
CropX has been very active for a young company on the acquisition front, having made four acquisitions to date:
- CropMetrics - a precision agriculture company focused on advanced agronomic solutions while specializing in precision irrigation management
- Regen - irrigation decision support company out of New Zealand.
- Dacom Farm Intelligence - IoT irrigation monitoring company.
- Tule - Sensor-based company
Lastly, an investment from an irrigation company in Reinke Irrigation is notable. CropX has previously announced a partnership with Reinke.
One of Reinke’s competitors, Valmont, acquired Prospera for $300m two years ago and other assets like PrecisionKing.
Their other significant competitor, Lindsay Irrigation, has acquired FieldNet and partnered with agtech companies like Ceres Imaging.
To my knowledge, Reinke has not acquired any irrigation technology company and has a less robust decision support and precision irrigation offering.
The funding will be used to build on the two pillars of CropX's growth: the continued development of innovative capabilities for its agronomic farm management system, and the acquisition of companies with complementary technologies and market reach. Through this partnership, Aliaxis and CropX will continue to collaborate closely in the field of data-driven precision irrigation. Additional investors in the round include Edaphon, Finistere Ventures, NTT Finance Corporation, OurCrowd, Reinke Irrigation, Yair Shamir, and Victrix.
Food production accounts for roughly 70 per cent of total freshwater withdrawals globally and efficient water usage in agriculture is clearly becoming more and more important. Users of CropX's irrigation planning are able to conserve irrigation water and boost yields. In addition to irrigation, the CropX system also optimizes the use of energy and fertilizers, supports farmers in adopting more sustainable farming practices, and is becoming a one-stop-shop for crop management. CropX now has over 100 employees in the US, the Netherlands, Israel and New Zealand and a large research and development department.
CropX CEO Tomer Tzach comments: "Completing this funding is a huge endorsement from our investors of the value that we bring to our customers and shareholders, and the positive impact we are making on farms around the world. This round follows CropX's January acquisition of California-based precision irrigation company Tule Technologies, our fourth acquisition. We are proud to be one of the consolidation leaders in ag-tech as we bring a complete, powerful and simple solution to farms and agribusinesses."
Eric Olsen, CEO of Aliaxis says: "Sustainable water management is at the heart of what we do at Aliaxis. Aliaxis Next is our division created to select, nurture and grow startups in the field of water management. CropX is the best in class for smarter irrigation systems in agriculture and we are thrilled to strengthen our partnership to allow farmers to save water while increasing crop efficiency and food production in a sustainable fashion."
Vincent Vliebergh, Managing Partner of Edaphon, further commented: "CropX real-time field data and agronomic expertise supports sustainable farm management and greater productivity to restore soil systems while still feeding a growing population. The implication of Aliaxis providing its industrial and research expertise as well as access to market is a great asset."
The financial details of this agreement will not be disclosed.
