1st August, 2024 — Oorja, a leading provider of solar irrigation services and agricultural advisory to smallholder farmers in India, is thrilled to announce the successful close of its US$1.5 million Pre-Series A funding round.
The round attracted $1.2 million in equity finance from impact investors Acumen, elea, a family trust advised by Artha Impact, Echoing Green Signal Fund, Partners Group via its employee-run impact investment association PG Impact, and 1to4 Foundation, as well as $300,000 in non-dilutive funding from the Swiss Re Foundation. These notable funders join Oorja’s existing investor, Schneider Electric Energy Access Asia.
Oorja owns, operates and maintains decentralised solar infrastructure at the farm level and sells affordable irrigation and milling services to groups of smallholder farmers. Since 2018, the company has pioneered an inclusive Pay-Per-Use model to mainstream access to solar technology for agricultural use. Users pay for irrigation water and produce processed at affordable volumetric tariffs.
Oorja’s farming-as-a-service model has been transformative for smallholder farmers, enabling access to year-round irrigation, increasing crop yields and boosting income.
Oorja’s latest funding will be used for deploying agri-energy infrastructure for irrigation and milling and deepening operations in existing and new states. Oorja will also launch a B2B2C vertical to deliver solar irrigation solutions to agribusinesses and SMEs who engage with smallholder farmers for procurement. The grant portion of the capital raise, supported by Swiss Re Foundation, will be used to deliver climate-smart farmer advisory services to help farmers diversify to high-value crops, reduce dependence on chemical inputs and increase crop yields.
This infusion of capital will propel Oorja to work at scale, enter new geographies and amplify its impact, accelerating the transition from fossil-based energy and inputs to clean, affordable and reliable energy.
By the end of the decade, Oorja’s objective is to deploy 10,000 agri-solar projects, reaching 1 million people across the Global South. These projects would avoid around 500,000 metric tons of CO2e emissions over their lifetimes by displacing fossil fuel and fossil-derived fertilisers. In addition to the significant climate benefits, the widespread adoption of solar-powered irrigation will help farmers strengthen their livelihoods and improve food security.
“We are delighted to welcome on board reputed impact investors and funders who are aligned with our mission to decarbonise agriculture, while putting the needs of smallholders first. Their support comes at a crucial time as we get ready to scale up from the regional to the national level, putting us on a path to profitability,” said Amit Saraogi and Clementine Chambon, Oorja’s co-founders. “Besides funding, we also look forward to our funders’ valuable contributions on strategic decision-making and access to their network of partners in the agri-energy domain.”
Paraag Sabhlok, Associate Director, India Portfolio, Acumen, said: “Climate change-induced irregular rainfall and declining water levels threaten crop productivity and farmer resilience. This is worsened by the unaffordability of available technologies to smallholder farmers. We are optimistic about Oorja's pioneering Pay-Per-Use approach to make solar technologies accessible and affordable for such farmers. We believe that Oorja’s solar-based agri solutions have the potential to drive higher farm output and better livelihood opportunities. At scale, the asset-sharing model will be critical in facilitating a just energy transition by reducing the use of diesel generators.”
Elodie de Warlincourt, Senior Portfolio Manager at the Swiss Re Foundation, said: "Oorja’s double focus on climate adaptation and mitigation is strongly aligned to Swiss Re Foundation's objectives. We were attracted by the fact that Oorja makes solar power accessible and affordable to low-income marginalised farmers. It also does so in a way that ensures solar assets are operated and maintained for their full lifetime. We are proud to support Oorja to strengthen their advisory services, helping farmers to engage in a third planting season, which can be transformative for them and help them adapt to climate change."