Acquisition opportunity - Project Agri-bot

Background

Our client has developed a fully autonomous crop scanning solution, powered by AI and Robotics, to help farmers and the world's largest agricultural corporations become more sustainable and profitable with Per Plant farming.

The embedded AI seeks to use the latest agronomy, soil science and market data for the farming industry to make more informed choices on the use of pesticides, herbicides and fungicides, to minimise costs and maximise yields.

Using proprietary software and hardware, our client aims to reduce herbicide use by up to 95% and fertiliser use by up to 24%, resulting in environmental benefits, cost savings and enhanced profitability.

Product summary

Our client holds patents for its core offering/technology:

‘Mapping & Monitoring’ –autonomous mapping and monitoring the field, delivering Per Plant intelligence for the whole farm –integrating this Per Plant intelligence into existing farm sprayers, using a precision application map to apply chemicals only where they are required. Commercially available.

‘Autonomous Precision treatment’ –Using Per Plant intelligence the robot is called out, when required, to feed the crop, remove weeds and deliver pesticides, herbicides and fungicides, as required with a targeted Per Plant approach. Undergoing field trials.

Key investment highlights

Our client is seeking further investment, or a full acquisition to scale and achieve its growth objectives.

An opportunity to be at the forefront of a significant technological advancement in the $5tn agriculture market.

Commercially available hardware and software already launched in the UK. Our client is fully subscribed for 2023, with the service currently live with 13 UK farmers, with over 130 farmers on a waiting list (totalling 100,000+ ha of potential future service).

The business is already revenue generating in FY23 and is forecasting revenue of £3.6m in FY24 and a gross margin of 13.8%.

Our client has clear plans to roll out a UK nationwide Franchise network to drive revenues and growth. Forecasting revenues of £112m by FY27, with c.85% of revenue coming from the Franchise network.

Opportunities to grow/scale internationally, with close links throughout Europe and North America. Using the Franchise model to scale efficiently, while maintaining the integrity of the service.

Strong relationships with Corporates in the agricultural sector –providing bespoke projects and long term solutions for new revenue generation, R&D and regulatory compliance of their current portfolio.

An opportunity to be involved in the development of further products / revenue streams which reach beyond the farming sector.