Agtech startup harvests $7 million after 12 years of bootstrapping

Queensland farm management tech platform Inform Ag has sold of 43% stake in the business for $7 million in its first external raise, 12 years after launching.

The cash came from a customer, the ASX-listed Rural Funds Group (ASX: RFF) in something of a strategic shift for the agricultural fund manager, which has traditionally invested in cattle, vineyards, almonds and more recently, macadamias.

In July, the ACT-based RFF’s parent company, Rural Funds Management (RFM), struck the $7m deal with Inform Ag for a 43% stake with options to acquire up to 50% of the business over the next two years. The acquisition is split between $5m cash plus $2m  in a convertible debt facility across two tranches, with the repayment of debt through issue of additional equity to RFF.

Inform Ag founder Jennie Savill

Inform Ag has multiple farm management platforms, addressing irrigation automation, data management and vehicle tracking. It was founded in 2012 by Jennie Savill in Goondiwindi, Queensland. Its flagship irrigation control and automation system is used by RFM on its macadamia orchards to optimise yield and management efficiency.

The startup posted 300% revenue growth last financial year and is profitable. The capital injection will be used to expand Inform Ag’s brand footprint and accelerate the launch of new products, alongside product development and strengthened customer support.

Rural Funds Group MD David Bryant will join Inform Ag’s board along with horticulturalist Stuart Kilduff,

Inform Ag CEO Steve Lockyer said the fresh capital is a significant milestone in the company’s mission to deliver advanced tech solutions for farmers and agribusinesses globally.

“We are incredibly excited about this new chapter in Inform Ag’s journey,” he said.

“The investment from Rural Funds Group not only validates our vision and the work we’ve been doing but also provides the resources needed to scale our operations and bring innovative new products to market more rapidly.”

RFM, founded in 1997, manages around $2.4 billion of agricultural assets across five states. MD David Byrant said the deal was a win-win for both companies.

“RFM has been a customer of Inform Ag for two years as it develops 3,000 ha of macadamia orchards in Queensland,” he said.

“We’re pleased to make this financial investment which will be used to support Inform Ag’s growth, as well as working alongside their team for further product development.”