July 29th - EIP_Case Study Deep Dive_EPL.pptx

dive

1. Bringing Climate-Smart Technologies to Smallholder Farmers

2. Smallholder Farmers (SHFs) by Numbers Source: The Number, Size, and Distribution of Farms, Smallholder Farms, and Family Farms Worldwide, Sarah K. Lowder, Jakob Skoet and Terri Raney. World Development , 2016, vol. 87, issue C, 16-29, Figure 7 .  Distribution of farms and farmland area by land size classes, 106 country sample.  95% of global farms cultivate less than 5 hectares  84% of SHFs cultivate less than 2 hectares 20% of global farmland is cultivated by SHFs 80% of food in Asia and SS-Africa is produced by SHFs

3. 69.2% Semi-medium © 2025 Evergreen Innovation Platform LLC. All rights reserved. Climate Risks for Indian Smallholder Farmers (SHFs) Source : What climate-smart agriculture means for smallholder farmers (McKinsey 2023) 86%  cultivated land held by SHFs 95%  exposed to at least one climate hazard ~$120  avg. agricultural household monthly income ~$850  avg. agricultural household debt. Debt as a share of annual income i ncreases with farm size: 15-20% of India's GDP comes from agriculture produced by its 150 Mln Farmers Drought Extreme heat Riverine flooding Coastal flooding Exposure to at least one of the hazards 85 81 74 9 95 Ever increasing loss of arable land and economic opportunities 45.5% Micro 57.2% Small 77.4% Medium 83.7% Large Source : Ministry of Agriculture & Farmers Welfare, International Journal of Rural Management

4. Potential of Innovation for SHFs Innovation is key to improving productivity, food security, and ecological footprint of the agricultural industry. We seek solutions in the following areas: Soil Preparation Technologies and inputs for soil improvement Remote sensing and leveraging data and AI for  crop planning and advisory Machinery and robotics  to reduce labor intensity Growing Season Optimizing mineral fertilizer use for reduced chemical harm to soil and water Irrigation and precision agri -tech for increased water/resource efficiency Sustainable solutions for increased yields and climate resilience Harvest & Post Harvest Sustainable packaging solutions Machinery and robotics  to reduce labor intensity Treatment and solutions for extended shelf life and reduced food loss Market Linkages Distribution solutions for increasing prices and income Traceability technologies which allows access to premium markets Measurement, Reporting, and Verification (MRV) solutions for monetizing environmental impact

5. Agri-tech startups are not targeting SHFs in emerging markets due to difficulties reaching economies of scale As result, 74% of farmers in India have a low to medium awareness of climate-smart technologies 01 Markets are largely inaccessible to SHFs who need to travel 4+ hours by road to nearest market Risk Aversion and upfront investment are a significant hurdle, with SHF comprising a large proportion of the world's poor living on less than $2 per day 02 Supply The Evergreen Innovation Platform  was founded to bridge the gap between smallholder farmers and agricultural innovators by de-risking the market entry process for the technology companies and creating a trusted connection with SHFs. Barriers to Access Why Climate-Smart Technologies remain out of reach for Smallholder Farmers (SHFs) Adoption

6. SOURCING PHASE Identifying relevant technologies based on SHF needs VALIDATION PHASE Proving technology and perfecting business models GROWTH PHASE Reaching SHFs at scale Our annual target is to source 80+ companies, and onboard 10% for validation and commercialization EIP's Pipeline Approach Sourcing, Validating, and Scaling Climate-Smart Technologies for SHFs 1. Source technologies globally to address SHFs’ needs 2. Screen  & select subset of technologies 3. Finalize agreement between EIP & companies 4. Validate applicability with PoC & adapt business models 5. Additional scaled testing & commercialization plan 6. Showcasing fully adapted technologies and training farmers to use them 7. Direct distribution as well as link to outside distributors

7. Strategic Partnership with AEGF Access to solutions Builds a pipeline of adapted innovative solutions upon the smallholder farmer network Productivity Productivity Expertise Access to Credit Access to Credit Market Access Risk and Exposure AEGF * Provides a foundation of advice and support for SHF . Productivity Training Access to Credit Market Access Risk and Exposure Provides a base of advice and support for SHFs – aggregating over 2 mln Biz Model Development Sales Support

8. Global Opportunity in Agri-tech – Indian Success 1 Global agri-tech raised 26.1B in 2020 - a 15.5% year-over-year increase India’s agriculture sector worth $370B , main source of livelihood for over 40% of the population Indian Agri-tech startups raised $2.1B in April 2020 – March 2021 Source: Agfunder report with Omnivore India 2021: https://research.agfunder.com/india-2021-agrifood-startup-investment-report-aa.pdf

9. India has a Healthy Agritech Innovation Ecosystem 1 Policy Finance Culture Supports Human Capital Markets Government leadership and incentives to support innovation development and growth Continuity of finance, from angel, pre-seed rounds to B/C up until an M&A or IPO for local Indian companies. Innovation and entrepreneurship seen positively, existence of success stories Easily accessible customer networks, large corporates, associations and supply chains Strong talent and expertise, skilled and educated workforce Accelerators, Incubators, Co-working spaces and professional services Indian Agritech Ecosystem

10. Mostly disconnected from smallholder farming 1 Most of the local Indian agritech ecosystem is geared towards downstream: retail, grocery, premium foods Therefore, mostly not addressing smallholder’s core needs Relevant local agritechs are mainly offering digital solutions: Agribusiness marketplace Farm management software (partial fit) Biotechnology Reasons that supply of solutions for smallholders is still limited: Fragmented market, farmlands are small and disconnected Many barriers to adoption of new technologies, additional support is needed. Strongly supported through philanthropy and non-profit models Market rate investors see this market segment as unattractive and risky for startups. Source: Agfunder report with Omnivore India 2021.

11. Upstream supply of innovation is limited 1 Indian upstream solutions raised only $318M Upstream agritech category includes all the solutions relevant for smallholder farmers, and much more: Low supply is not just a funding challenge, it indicates that the ecosystem for smallholder innovation is not a healthy one. Source: Agfunder report with Omnivore India 2021.

12. Smallholder Agritech Innovation Ecosystem: C ritical E lements M issing 1 Policy Finance Culture Supports Human Capital Markets Valley of death in rounds A and B, local VCs rarely invest in solutions for smallholders. Global funding available for late stages but reaching them can be challenging for a startup Limited success stories from entrepreneurs tackling core challenges of smallholders (locally and globally) Fragmented markets, inaccessible to a small company without massive support, no clear path to scale Local technological capabilities strong, but farming and tech professionals largely disconnected Accelerators, Incubators and NGOs continue to support early-stage development of solutions and look to support their companies to scale Indian Agritech for Smallholders Ecosystem Government support for innovation and smallholder farmers continues as key focus Legend Strengths that can be leveraged Elements that can be strengthened Ecosystem gaps that need to be bridged

13. EIP Fills the Gaps and Strengthens the Smallholder focused Agritech Ecosystem 1 Policy Finance Culture Supports Human Capital Markets EIP designed to strengthen the ecosystem Working with government to align with local priorities, leverage incentives for adoption, support regulatory approvals and partner with supported entities Attracting international investors to invest in solutions for smallholder farmers, crowding in the investors by offering quality and quantity deal-flow for this market Creating success stories of startups that managed to raise millions and are implemented in the millions, reversing the mindset that smallholder innovation is based on philanthropy Offering market access at scale, can be seen as the innovation arm to large scale market adoption among smallholder farmers Importing best practices and new technologies, creating a spillover effect to local talent allowing future local innovation to develop Providing knowledge and best practices to supporting programs for the smallholder market, offering market access to supported companies

14. When Looking at the innovation d evelopment p ipeline the gaps become clearer Public / private funding for primary research and invention Technology development Early incubation Development of product and proving solution: Initial validation Product market fit Theoretical business modeling Evolving for scale: On-ground validation at scale Adaptation for scale Initial scaling with paying client Funding for major scale-up and new client engagement The development ecosystem is missing a link for smallholders in emerging markets Some of the same new technologies that reach early start-up stage with conventional support could also be applied to smallholder farming Furthermore, the pipelines of innovations specifically targeting smallholder farmers being developed and supported by government, NGOs, and other developmental entities can’t scale There are many investors focused on Agriculture, Emerging Markets, Impact and Climate ready to invest in projects that have proven they can scale Despite the availability of capital for solutions targeting smallholders, the pipeline is not there Innovation arms of large corporates play this role, working with the companies to further adapt the product to fit real world needs, and negotiating commercial agreements for scale thus requiring the startups to further adapt their business models For smallholder farmers, there is a need for cost-effective access to the market for the scale testing and validation, support for product and business model adaptation and an initial base of paying customers 14

15. Win-Win Approach: Creating Commercial Value

16. Win-Win Approach: Creating Scalable Impact

17. EIP Bridges the Gap to Climate-Smart Technologies for SHFs Market Access Tech Solutions Supporting Partners SHFs AEs Distributors Climate Adaptation Soil Health Water Governments Foundations I nvestors Off- Takers & Corporates

18. Cultivating Resilience Poverty Alleviation & Enhancing Food Security & Climate Adaptation Keys to EIP’s Commercially Sustainable Model Supporting market entry for innovative companies and reducing risks associated with this market Providing pipeline of adapted technologies for SHFs, reducing costs and increasing their income Creating innovative business models that include leveraging subsidies and climate monetization schemes  In the future, this model can be expanded to innovations addressing additional challenges in rural Indian communities EIP's vision is to scale this model to support SHFs in the global south (i.e., Africa, LATAM, South-East Asia)  By 2035… Engage ~10M SHFs 30+ solutions commercialized Reach ~ 100K AEs

19.   EIP’s Agri-Tech Partners   EthnoMushroom Croptune Alvatech Fib-Sol Farm Sathi NOF NEOPERK AST Bioensure MIVIPRO Navork Fruvetech Rahejra Solar XEN Farms Arogyam Mediasoft First Revenues Q1 2025

20. Groundwork BioAg – Mycorrhiza Technology © 2024 Evergreen Innovation Platform LLC. All rights reserved. Program completion and entrance into commercial phase 10-25% Increase in average crop yield (SDG 2) 25% Reduction in fertilizer use (SDG 12) 25% Reduction in water use (SDG 6) 3x-5x ROI in Technology $11m Raised after program completion

21. Groundwork BioAg – Mycorrhiza Technology Cucumber Cluster Bean Okra Cow Pea Bitter Gourd Tomato Brinjal Chili French Bean Capsicum Green Peas 10 % 11 % 12 % 14 % 15 % 15 % 17 % 17 % 18 % 20 % 25 % Increased transplanting success, drought, resistance, plant health and stress tolerance Increased Carbon Sequestration Increase in Organic Matter Increased Water Retention in the Soil

22. Startup Financing for Working In Indian Agri Venture Capital In India - local VC firms are limited to investing only in companies registered in India. Limited investments are made from international funders. Global startups – will raise from global or local VC funds. differs greatly if it is an Indian Company or an international company. Impact investors In India – they are limited to for profit equity investment structures In the US – can be a variety of commercial terms, from recoverable grants and low interest loans to patient equity. Foundations or Government Indian startups – can get grants from government innovation programs or from international foundations Global Startups – primarily have access to grant funding to explore smallholder markets Corporates primarily as a client, but could have an investment arm for direct investment.

23. Soil Sathi - Provides  Agronomic Advice with Portable IoT-Powered Soil and Water Testing Device High Accuracy Results matched wet-lab data 90% with just 7% variance. Efficiency Complete test <45 min per sample, faster than traditional methods. Practicality Lightweight, portable battery-operated, GPS-enabled, and user-friendly Fertilization Efficacy tests 15 soil and 9 water parameters to provide recommendations Innovation Spotlight: “Soil Sathi’s partnership with EIP has broadened our scope of on-the-ground efforts to empower farmers with affordable soil testing and optimization solutions that catalyze positive change.” Partha Chakraborty | Chief Scientific Officer, Arogyam Medisoft Solution

24. Soil Sathi – Understanding the Financials for adoption Capital Budget Uses of Funds Liquidation Liquidation value Coverage Testing device (unit cost in INR) ₹ 90,045 75% ₹ 67,533 0.81 Reagent MOQ (in INR) ₹ 20,689   Total uses (in INR) ₹ 110,733       Total uses (in USD) $ 1,303       Sources of funds     Term (months) Interest (per month) AE Contribution ₹ 27,683 25%   Seller loan ₹ 83,050 75% 24 1.5% Total sources (overall required loan to get started ₹ 110,733 100%     This can be solved through guarantee structures, subsidies, NBFCs, carbon credits etc .

25. Distributors realize AE development, training and technology distribution Agri-Entrepreneurs (AEs) Smallholder Farmers (within AE network ) Agritech Companies Evergreen Innovation Platform AEGF Ecosystem Other distributors* Sales Commission Distribution Commission Innovative Agri-Tech implementation / adoption Operational financial flows: commissions and fees Legend EIP as a Catalytic Intermediary – Business Model EIP Ecosystem

26. EIP Revenue Drivers - Commissions EIP Projections Smallholder Farmer (SHF) current network of 1.7M Network grows by 5,000 Agri-Entrepreneurs (AE) annually Every AE works with > 100 farmers 6-8 new companies signed annually EIP Commission on company sales - 5% on average EIP/Company contract period ~10 years ~2 companies will be successfully commercialized yearly Cohort size begins to grow slowly starting 2026, aiming to reach a steady state of around 15 companies annually Market penetration and growth expectations Market penetration begins on year three at 0.2% and grows to 6% over time within our network Sales through external distributors are assumed to grow by 5% annually

27. EIP – Blended Finance Approach Type Amount Uses Key Features & Terms Grants 3 mil Research, Impact Evaluation, Small- and Large-Scale Tech Validations Non-repayable funding Supports validations, data collection, farmers needs research and impact assessment Typically, upfront disbursement, annual milestones Focus on accountability and reporting Recoverable Grants or Low-Interest Loan (PRI) 0.8 mil Pre-Commercial Adaptation, Demonstration and Training Grace period: 3-4 years Below-market or zero interest Funds adaptation, training, and initial deployment Flexible repayment linked to milestones Dividend-Paying Equity or Revenue-Based Loan (PRI ) 1.2 mil Commercial Scale-Up Preferred returns/dividends after revenue thresholds Buyback options Repayment tied to revenue growth Aligns financial returns with impact success The Lemelson Foundation’s $1.4M was our first catalytic capital investment. Our goal is to be a ready for (commercial) impact equity in 3 years, and bankable in 5 years. The funding below will allow EIP to overcome the dip, build up strong revenue streams and continue to grow our impact with no further need for grants or concessional capital.

28. Thank you Daniela Kandel Founder & CEO [email protected]