OlsAro Raises $5.5 Million to Develop Salt-Tolerant Wheat

Swedish agricultural technology startup OlsAro has raised $5.5 million in seed funding to accelerate the development of salt-tolerant wheat and prepare for its commercial launch in 2027. The company specializes in crop breeding and aims to increase agricultural productivity in salt-affected soils, making it possible to cultivate land where conventional wheat varieties struggle to maintain yields.

According to AgFunderNews, the funding round totaled €5 million and was co-led by Industrifonden and Nordic Foodtech VC, with participation from Future Food Fund, PINC, AgFunder, and GU Ventures.

The investment brings OlsAro's total funding to approximately $8.3 million, providing additional resources to expand its SeedAX technology platform, accelerate commercial partnerships, and strengthen research programs.

The company also plans to develop crops with greater drought tolerance, improve nitrogen-use efficiency, and expand its technology into other cereals, including rice.

OlsAro's first major product is a salt-tolerant wheat variety designed to maintain higher yields in soils where conventional varieties face significant growth limitations.

The company reported that field trials conducted in Bangladesh demonstrated yield increases of up to 41% compared with a moderately salt-tolerant reference variety under saline conditions.

These findings reflect specific trial conditions and do not guarantee equivalent yield improvements across all agricultural environments.

Soil salinity represents a major challenge for global agriculture, affecting approximately 10% of the world's cropland, according to figures cited by the company.

Salt accumulation can limit plants' ability to absorb water and nutrients, reduce crop yields, and make certain areas unsuitable for conventional agricultural production.

The problem can be intensified by flooding, cyclones, freshwater shortages, and the use of saline or brackish water for irrigation.

Against this backdrop, OlsAro is developing crop varieties capable of maintaining productivity under increasingly challenging environmental conditions.

Chief Executive Officer Elén Faxö explained that the company's objective is to help farmers cultivate land currently constrained by high soil salinity.

Bangladesh is one of OlsAro's primary markets for commercial development.

Approximately one million hectares of agricultural land in Bangladesh are affected by salinity, while domestic demand for locally produced wheat continues to increase.

OlsAro is working with seed company Lal Teer Seed to prepare for a commercial launch in 2027.

The partnership focuses on adapting wheat varieties to local growing conditions and completing the field evaluations needed before commercialization.

The startup is also conducting field trials in Kenya, Pakistan, Egypt, Italy, Canada, and Australia, evaluating wheat performance under saline conditions and heat stress.

In India, OlsAro maintains partnerships with agricultural companies, including DCM Shriram, which has conducted trials of its wheat lines in Uttar Pradesh and Bihar.

India represents a significant potential market because approximately seven million hectares of land are affected by soil salinity, according to estimates cited by OlsAro.

The company's wheat varieties are designed to perform in soils with electrical conductivity levels of 4 to 8 decisiemens per meter, with evaluations extending to 10 decisiemens per meter.

These conditions range from moderately to strongly saline soils, where conventional wheat can experience substantial yield reductions.

To develop its varieties, OlsAro combines artificial intelligence, genetic information, and plant breeding through its SeedAX platform.

The technology analyzes genomic data, field-trial results, and molecular information to identify genetic characteristics associated with resistance to environmental stress.

Researchers then use those findings to select plant materials that can be incorporated into breeding programs for commercially relevant varieties.

The company follows two technological approaches depending on the regulatory requirements of each market.

The first involves generating genetic diversity through chemical mutagenesis, a technique that produces variations in plants and allows researchers to select those with desirable characteristics.

According to Faxö, varieties developed through this approach are not classified as genetically modified in the company's target markets.

The second approach involves gene editing, which enables targeted changes to plant genetic material.

The choice between these methods depends on research objectives and the regulatory frameworks governing crop development in different countries.

Artificial intelligence helps accelerate the identification of valuable genetic traits and may reduce the time required to develop varieties adapted to difficult growing conditions.

Beyond salt tolerance, OlsAro intends to apply its technology to drought resistance and more efficient nitrogen use.

The new funding will support these research programs while expanding collaborations with seed companies.

OlsAro's progress reflects growing investment in agricultural technologies designed to sustain crop production under increasingly demanding environmental conditions.

Although its salt-tolerant wheat remains in field trials and commercial preparation, the results reported in Bangladesh highlight the potential of plant breeding to improve yields on salt-affected land.

The planned commercial launch in 2027 will represent an important milestone in evaluating the technology's adoption and performance at a larger scale.