Rize raises $31 million to help rice farmers cut methane emissions

Singapore-based agtech Rize has raised $31 million in Series B funding to accelerate the adoption of sustainable rice farming practices that reduce methane emissions, lower water consumption, and improve the incomes of smallholder farmers. According to AgFunderNews, the company will use the capital to expand its operations across Southeast Asia while maintaining its focus on productivity and climate resilience.

The funding round brings Rize's total capital raised to $47 million and combines $20 million in equity financing, led by BNP Paribas Asset Management Alts, with participation from The Rockefeller Foundation, Temasek and Breakthrough Energy Ventures, alongside $11 million in debt financing provided by UOB, BIDV and Temasek Foundation.

Rice cultivation accounts for an estimated 10% to 12% of global methane emissions, largely because conventional flooded rice paddies create conditions that generate methane-producing bacteria. Rize is addressing this challenge by helping farmers transition to Alternate Wetting and Drying (AWD), a cultivation method that periodically drains and refloods rice fields.

This technique has been shown to reduce methane emissions by 30% to 70% while maintaining crop yields and significantly lowering water use, making it particularly valuable in regions increasingly affected by water scarcity.

According to AgFunderNews, many smallholder farmers face financial and technical barriers when adopting new agricultural practices. To overcome these challenges, Rize works directly with producers through a team of more than 50 agronomists and a proprietary mobile platform that collects field data, provides agronomic recommendations, and supports measurement, reporting and verification (MRV) systems for emissions reductions.

The company also ensures that rice produced under its programs complies with Maximum Residue Limit (MRL) standards required by premium international export markets. Its emissions reduction projects have already received independent verification, strengthening confidence among investors and buyers.

Rize currently works with approximately 17,000 smallholder farmers across 50,000 hectares in Vietnam and Indonesia. The company has already exported around 1,500 tons of low-emission rice to markets including Europe, Canada, Australia and Singapore.

With the new investment, Rize plans to expand its network to 150,000 farmers managing 300,000 hectares before the end of the decade. The company also intends to broaden its platform by integrating agricultural input retailers and other agrifood service providers into its ecosystem.

CEO and co-founder Dhruv Sawhney highlighted the importance of the investment for the company's next growth phase. "This investment allows us to unlock the next phase of growth by further expanding scale, investing in market linkage and exports, and cutting edge technologies to deliver better decision making, better productivity, and better outcomes across the whole value-chain," he said.

The funding will primarily support the expansion of AWD practices and MRL compliance programs in Indonesia and Vietnam, while Rize also evaluates opportunities to enter additional international markets. As reported by AgFunderNews, the company's long-term strategy is to combine climate technology, sustainable agriculture and market access to make rice production more profitable and environmentally responsible.