Thinking differently and dedication to the farmer and global food ecosystem has made Monarch a driving force in the ag robotics industry in just seven years. Remarkably, Monarch has outpaced many large corporate agricultural incumbents in developing an integrated energy, automation, and data platform in the form of a compact tractor. Monarch’s momentum comes from an innovative mindset, strategic thinking, and a large dose of audacity.
On April 8, Simon Leich, founder and host of Leaders on a Mission podcast, discussed Monarch’s extraordinary journey with CEO and co-founder of Monarch Tractor, Praveen Penmetsa on the episode, “Sustainable Agriculture, Farming the Future with Electric Tractors.” The podcast is available on Spotify, Apple Podcasts, and YouTube.
Monarch Tractor is a company revolutionizing agriculture with electric, autonomous technology, amazingly founded in 2018. I mean, it's only been seven years, but this growth trajectory has been pretty incredible.
Simon Leich, Founder & Host, Leaders on a Mission Podcast
The Art of the Possible
Monarch has brought a series of impressive firsts to market: world’s first driver-optional, smart, 100% electric tractor, first fully autonomous operation in a driver-optional tractor, and first automated lane-centering driver-assist feature in a compact tractor for narrow specialty crop rows. These accomplishments come from Monarch reimagining, not what a tractor does, but what it could do. It’s a mindset of audacity.
Initially, Penmetsa drew inspiration from the innovative transformations he witnessed in the automotive and energy industries from about 2005 through 2015. Early on, these industries were, according to Penmetsa, “low on the innovation scale and very hard to disrupt.” Within 10 years the entire landscape had changed.
Being exposed to that innovation culture of saying, ‘This is what it is today, but what could it be tomorrow? How do we bring these visions to life?’ It’s a combination of not just technology, but technology, art and the business side, all of them coming together.”
Praveen Penmetsa, CEO & Co-founder, Monarch Tractor
Penmetsa recognized another industry that was low on innovation and ripe for transformation. Agriculture.
For decades, farming had turned to increasingly larger machinery and more chemicals to solve its challenges, two approaches that only exacerbated a farmer’s dependence on expensive, and in some cases, toxic external inputs. Farmers also have many stakeholders – consumers, implement companies, herbicide and pesticide companies, government regulators, and more –each with their own interests affecting a farmer’s decision.
A farmer only gets 40 attempts in his whole lifetime. So anytime you ask him to do something different, you're basically using up one of those attempts.
Praveen Penmetsa, CEO & Co-founder, Monarch Tractor
Farmers cannot bear the risk and cost of innovation that accompanies transformation. To be successful, Monarch had to find a better way.
Inspiring Monarch
The path to Monarch and the MK-V was shaped by two significant events. The first involved a project that focused on using electric vehicles to power homes. That, in turn, became a launchpad for Penmetsa to ask, “If an EV could power a house, what is a better way to power agriculture?” The obvious answer was an electric tractor, especially for rural communities struggling with energy issues as Penmetsa experienced in India.
The second event involved autonomous vehicles for on-road use. Discussions with farmers around the world revealed that autonomous operations in agriculture offered advantages to autonomy. Tractors operate at slower speeds and although farm environments have their own complexities, they are removed from the public and the unpredictable nature of human driving and pedestrians.
Mashing these two ideas and getting the right people around it was a big ‘Aha’ moment. There were a lot of upfront challenges, but I could see where the macro trend was going.
Praveen Penmetsa, CEO & Co-founder, Monarch Tractor
Combining electrification and automation formed the basis of Monarch’s MK-V. Turning the tractor into an energy, automation, and data platform offered a more comprehensive and sustainable solution to the challenges farmers face. This early vision of an integrated platform was a bold move, but it’s proving its worth.
Recognizing that farmers operate on razor-thin margins and have little room for risk, Monarch’s co-founders took their innovative, comprehensive mindset to overcoming market adoption barriers.
Leveraging the decarbonization element of the MK-V as an electric, energy platform attracted support from government agencies, state initiatives, grant programs, and enterprise companies with sustainability goals. Proactive engagement with policymakers and industry stakeholders helped build regulatory support while creating a partnership pipeline.
Resiliency Against Challenges
Every startup faces difficulty and Monarch’s trials were industry wide. COVID and the overall economic slowdown in agriculture reverberated through the sector. Some changes have been positive. Consumers want more transparency in how their food is grown. The fragility of the global food ecosystem was also put into sharp focus. With its data capabilities and focus on sustainability and profitability for specialty farms, the MK-V helps with both.
There's complex technical and technology things you're layering on top of each other. Clearly building quality team would have been really important for this as well.
Simon Liech, Founder & Host, Leaders on a Mission podcast
Monarch’s mission also helped with talent acquisition. A tight labor market made it difficult for many tech firms to recruit top-tier workers. Monarch broadened its talent pool internationally, attracting a team driven by purpose and dedicated to doing good for the farmer and farm, food ecosystem, and the planet.
Android of Agriculture
Monarch wants farmers and businesses to reap the benefits of its technology, globally. It’s accomplishing this by having engineered a platform whose accessibility opens opportunities for development.
Because the MK-V is a data platform that runs on Monarch’s Wingspan Ag Intelligence (WingspanAI) technology, Monarch is licensing its AI platform to other farm equipment and off-road companies. It’s also enabling an ecosystem where third-party AI companies are using the MK-V’s data and infrastructure to develop and deploy specialized applications to help farmers. Subscription revenues for autonomy and digital services give farmers access to valuable operational insights while supporting further improvements.
Startup Advice
Reflecting on Monarch’s trajectory, Leich asked Penmetsa advice for early-stage founders building high-growth companies. In context of Monarch’s narrative, Penmetsa says he’s always learning but shared several bites of wisdom:
- Avoid short-term gains at the expense of long-term potential.
- Audacity and risk are your friends, when calculated and realistic.
- Build in terms of institutions, not short-term acquisitions.
Never mortgage your future for the present.
Praveen Penmetsa, CEO & Co-founder, Monarch Tractor
In the world of technological developments, people like to say the future is here. Today, however, is always a beginning. The future pushes forward and that timeline is where Monarch sets its ambitions, working to ensure farmers and farms, food security, and a healthier planet will be part of it. Audacious ideas can benefit all.
