Kilimo Assists Farmers in Conserving Water While Earning Financial Rewards

Often, individuals consider their water usage in terms of what’s consumed directly, such as drinking from the faucet or taking daily showers. However, significantly, about 70% of our water consumption is dedicated to agriculture, nourishing the food crops we rely on—a figure that increases to as much as 90% in countries with lower incomes. Securing water for various needs thus becomes a considerable challenge.

Nevertheless, in many regions, there is a push for farmers to use whatever amount of water they deem necessary for their crops, sometimes even in excess, to guarantee a good yield. Jairo Trad, the co-founder and CEO of Kilimo, expressed to TechCrunch, “Governments prioritize self-sufficiency in food production over the cost of water.”

“The downside is that if farmers apply too little water, they risk crop failure, financial loss, and further food scarcity,” Trad explained. “This creates a disproportionate risk scenario.”

The introduction of inexpensive irrigation techniques has converted countless regions into agricultural hubs, yet this development often means that very little water is left for other purposes.

For many corporations, the threat of running out of water is a grave concern. “Consider a $200 million bottling facility suddenly facing a water shortage next week—that represents a significant financial risk,” Trad remarked. “This prompted discussions around valuing water more effectively.”

What Trad and his team at Kilimo have developed is essentially a risk management instrument for water use. The company has collected around 100,000 soil samples from 45 different types of crops in multiple nations, mainly in South America. These samples are then linked to satellite images of agricultural lands, which are comparatively easier to obtain.

“To truly understand the behavior of a specific soil in a certain country, one must get close to the ground,” Trad highlighted.

Using this data, Kilimo is capable of remotely monitoring agricultural lands and guiding farmers towards more efficient water usage. The service charges a fee, but if farmers manage to reduce their water consumption, Kilimo facilitates the sale of the saved water to other businesses in need within the same watershed. Part of this income is then shared with the farmers, who often end up earning 20% to 40% more than what they spent on Kilimo’s services. Third parties verify these transactions, adhering to the Volumetric Water Benefit Accounting principles.

Having been operational for about a decade, Kilimo is now looking to broaden its impact amidst growing concerns over water scarcity. The company already operates across South America, including in its home country Argentina and Mexico, with plans to extend its services to the Southwestern U.S. and Europe. To fuel this expansion, Kilimo secured a $7.5 million Series A funding, as exclusively reported by TechCrunch, with the lead investment from Emerald Technology Ventures and contributions from iThink VC, Kamay Ventures, Salkantay Ventures, and the Yield Lab Latam.

Kilimo collaborates with global giants such as Microsoft, Intel, and Coca-Cola, which have all committed to significant water sustainability goals. (Data centers and the beverage industry are notable for their hefty water usage.) Trad is eager to forge additional partnerships, stating, “A single company can’t solve this alone. But by aligning the efforts of corporations, governments, and development banks, real change is possible,” he concluded.