GrowGrounds secures SEK 14.5 million to scale a new market-driven model for sustainable coffee

GrowGrounds, the Danish agritech company, is accelerating its expansion with SEK 14.5 million in new funding from primarily Swedish impact investors, including stakeholders based in and around Karlstad. With Löfbergs among its key investors, the company is strengthening its ties to Sweden’s coffee industry while scaling a new approach to sustainable sourcing.

Rather than relying on traditional certifications or aid-based models, GrowGrounds integrates climate action directly into coffee sourcing. The model connects coffee companies with farmers through agroforestry, digital traceability, and climate financing. And it turns sustainability into a core business driver.

The global coffee sector faces increasing pressure from climate change, with declining production areas and fragile farmer economics. GrowGrounds addresses this by:

  • Embedding agroforestry into coffee production to restore soil and biodiversity
  • Creating new income streams for farmers through diversified crops
  • Providing full farm-level traceability and data transparency
  • Connecting coffee sourcing with international carbon markets

Up to 80% of carbon revenue is returned directly to farmers, creating long-term incentives for sustainable production.

The company already partners with coffee actors across Europe and operates projects in Brazil, Nicaragua, Mexico, Kenya and Uganda, working with both large cooperatives and smallholder farmers.

With strong Swedish investor backing and partnering with Löfbergs, GrowGrounds is actively engaging Swedish coffee roasters and buyers. The ambition is to support companies in securing future supply chains while contributing to measurable climate impact.

Daniel Styrenius, GrowGrounds chairman of the board, Lister Keru, agronomist, and Leif Brodén at a plantage in Kenya.

– GrowGrounds represents a new generation of climate solutions where capital drives real change in the value chain. The model is scalable, commercially viable, and directly addresses structural challenges in coffee production. This is exactly the kind of solution we need to see more of in Sweden and globally, says Leif Brodén, one of the Swedish investors in GrowGrounds.

– With the new funding, we plan to expand our operations in Africa and Latin America while deepening partnerships with European, including Swedish coffee companies. The goal is to establish a new standard for how climate action is integrated into global value chains, says Lars Aaen Thøgersen, CEO and founder, GrowGrounds.

GrowGrounds digital plattform.
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