Tech-enabled innovation has become crucial for sustainable growth and efficiency in the agricultural landscape. India’s agritech sector is booming with startups building innovative solutions to revolutionise agriculture.

However, the journey from ideation to implementation requires substantial financial backing. This is where Agricultural Non-Banking Financial Companies (Agri NBFCs) come into play serving as integral enablers for these ventures.

Agricultural Financing Landscape 

Agritech startups have unique business models focused on increasing productivity, efficiency, and transparency across the agricultural value chain. India’s agritech sector is projected to grow to $24 Bn by 2025. However, their innovative solutions come with execution risks that make banks and other institutional lenders hesitant.

Agri NBFCs are strategically filling this financing gap. Their specialised sectoral expertise allows for more customised risk evaluation and products like revenue-based financing. 

By understanding the unique challenges faced by startups, these financial entities are becoming strategic partners in the growth journey of agritech ventures. NBFCs ability to offer quick and flexible financial solutions allows startups to focus on research, development, and implementation rather than being bogged down by financial constraints.

Employing Risk Mitigation Strategies

Over 1300 agriculture startups In India are actively using artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and other technologies to boost efficiency and productivity in the sector. By their very nature, agritech startups carry significant business risks given their exposure to agri value chain disruptions. 

Managing risks across such a fragmented landscape requires localised knowledge and tailored solutions. Agri NBFCs mitigate these risks through calibrated capital infusion aligned with milestones, extensive due diligence of promoter credentials, and deep sectoral knowledge to identify viable business models. Revenue-based financing models with variable repayments as per cashflows also ensure risk sharing. 

The regulatory push for priority sector lending is also expanding the role of Agri NBFCs. Still nascent, the agritech financing space offers immense potential for growth and impact.

Empowering Farmers Through Simplified Financing

With approximately 70% of small and marginal farmers deprived of formal credit, digital lending can transform access. Agri startups, in collaboration with Agri NBFCs, are playing a crucial role in empowering farmers. 

By establishing digitised systems and ensuring a hassle-free application and approval process, these initiatives simplify access to loans for farmers. This not only fosters financial inclusion but also contributes to the adoption of sustainable agricultural practices. 

Easy access to funds can be used for machinery and equipment, cutting-edge irrigation techniques, and other elements of the agricultural value chain. Farmers can invest in modern technologies and practices that enhance productivity, reduce environmental impact, and improve overall livelihoods.

Using alternative credit evaluation models based on agricultural cash flows and digital data, digital lending platforms by NBFCs are providing faster approval and disbursal. This tech integration not only enhances the efficiency of loan disbursals but also facilitates a more accurate evaluation of risk, enabling Agri NBFCs to make informed lending decisions. 

This in turn, makes obtaining funds easier for farmers, especially for those deprived of institutional credit. It delivers significant socio-economic benefits while advancing financial inclusion.

The operations of Agri NBFCs and their role in fostering innovation are greatly shaped by the regulatory environment. India’s Budget 2022-23 includes measures to support ‘digital agriculture,’ and there are plans to introduce a fund with blended capital aimed at financing startups in agriculture and rural enterprises, particularly those emphasising the farm-produce value chain. This initiative is expected to open up favorable financing options for agritech ventures.

The Road Ahead

The future of agritech financing is poised for significant transformations. Agri NBFCs are expected to witness substantial growth as more startups enter the space. Emerging financial models, such as revenue-based financing and impact investing, are likely to gain prominence. Additionally, advancements in financial technology will continue to shape the landscape, making financing more accessible and efficient for agritech startups.

Technology integration through digital platforms and big data analytics will continue reshaping the agricultural financing landscape making credit accessible to all stakeholders, especially farmers. With the growing convergence of agritech and financing, data-based credit evaluation models can expand financial inclusion for Indian farmers in the coming years. 

The post Unlocking Agri Innovation: The Role Of Agri NBFCs In Financing Agritech Startups appeared first on Inc42 Media.

With a fistful of tech, the Indian farmer is finally taking his rightful place at the centre of the agriculture value chain. Making this transformational shift is the tiny microchip, which is placing power in the hands of the tiller through the application of new-age digital technologies to agriculture, or agritech.

Data-driven agriculture is quickly gaining traction in India as it offers solutions to challenges that have held back the sector for too long. It has made the kisan realise that prosperity is no longer an impossible dream. Rather, with a smartphone in hand, a high-speed internet connection, and a leap of faith, he can seize the reins and discover what it’s like to steer his future.

This is not plain crystal-ball gazing. Agritech is ushering in sustainable farming practices, enhancing yield and productivity, plugging gaps in the supply chain, eliminating intermediaries, minimising post-harvest losses, and promoting financial inclusion for small farmers, who have traditionally had little access to institutional credit.

FY24 Will Be The Year To Scale Up

Although agritech startups began to make ripples in India a decade ago, the emergence of digital technologies such as big data analytics, artificial intelligence, machine learning and IoT-enabled innovations have placed them on the cutting edge of this sector. So, while 2023 saw many new innovations in farming, FY24 will be the year to scale up. 

The good news is that India’s farmers are readily embracing agritech as it is agile and offers solutions that are flexible, easy to use and easy to customise. This is especially effective in a country where small and marginal farmers account for 86% of farm holdings, which cannot benefit from the Western model of large farm size mechanisation. 

The advantages of precision farming, easy access to scientific information for better farming practices, and getting a fair price for their produce via e-mandis are low-cost, frictionless and life-changing innovations for the kisan. 

Indian agritech companies are also addressing the looming challenge of food security. With the country’s population expected to exceed 1.5 billion by 2030, ground-breaking technological innovations are making farming more sustainable, more efficient, increasing yields, and getting ready to feed rapidly growing numbers.

Slashing India’s massive post-harvest losses will also help feed more while saving thousands of rupees every year. An estimated 4-6% of cereals and 5-12% of vegetables are lost every year due to ineffective and faulty processing, storage, transportation and handling. 

Reforming Agri Practices With Tech

Agritech has been arresting crop wastage by offering advanced logistics solutions and modern storage facilities tailored to individual farmers’ needs.

Crop rotation and crop diversification too are making farming more efficient and minimising soil erosion. All the information needed – and it can be highly customised – is available via apps that can be downloaded on a smartphone in a matter of seconds. This is empowering farmers in ways they have never experienced before.

Among the numerous benefits of agritech are geotagging and barcoding, which are propelling India to the forefront of food exports via a robust food traceability system. Traceability ensures quality and wins trust, enabling India to export high-value products to countries that place a premium on food safety and meeting regulatory requirements.

Perhaps the biggest game-changer is the e-mandi. An e-marketplace, it connects farmers with buyers, online, reducing intermediary costs. It also allows price discovery, introduces transparency, eliminates wastage as produce is moved only after a deal is struck, and enables digital payments in a frictionless manner.

Another revolutionary innovation is the introduction of collateral finance, which is especially beneficial to small farmers. By allowing them to use their produce as collateral, agritech companies are unlocking a new stream of finance, in the form of small loans and microcredit.

In Conclusion

The sudden surge in the agritech space stems not only from its remarkable impact in the field but also from the massive digital push being given by the Indian government to the economy in general and agriculture in particular. Its most ambitious initiative is a new digital infrastructure called AgriStack, that aims to unify farmers across the country and address the challenges they face. 

Other important innovations are a revamped Soil Health Card and an Accelerator Fund to encourage rural entrepreneurs to establish agri-start-ups. The government is also encouraging public-private partnerships in the agri value chain, making it a priority sector in terms of economic development.

For a country where agriculture accounts for 16% of GDP and engages 43% of the workforce, it is imperative that we reimagine this historically marginalised sector. Agritech companies have convincingly demonstrated the power of digital technology in leading Indian agriculture into the future.

The post How The Smartphone Will Change Indian Agriculture In 2024 appeared first on Inc42 Media.

India’s agriculture sector is the backbone of its economy, employing a significant portion of the population and ensuring food security for the nation. However, traditional farming practices have long been associated with environmental concerns, including greenhouse gas emissions, soil degradation, and excessive fuel consumption. 

To address these challenges and promote sustainable farming, governments around the world are actively encouraging the adoption of electric tractors in agriculture. 

In this article, we will explore the policies and incentives that the Indian government is implementing to encourage the transition to electric tractors in agriculture.

The Case For Electric Tractors

Electric tractors are a promising solution to many of the issues plaguing conventional agriculture. They offer several advantages that make them a compelling choice for farmers and policymakers alike:

Environmental Imperatives: India faces a dual challenge in its agricultural sector: the need for increased productivity to feed its growing population and the necessity to reduce environmental impact. The transition to electric tractors aligns with broader efforts to combat climate change and reduce greenhouse gas emissions. Agriculture is a significant source of emissions, and the shift towards electric machinery can play a crucial role in achieving carbon neutrality in the sector.

Cost Savings: Electric tractors are more energy-efficient and have lower operational costs than their diesel counterparts. With the rising cost of fossil fuels, electric tractors can help farmers save money on fuel and maintenance, making agriculture more financially sustainable.

Reduced Noise Pollution: Electric tractors are quieter than their diesel counterparts, minimizing noise pollution and creating a more pleasant environment for both farmers and rural communities.

Energy Independence: Electric tractors can be powered by renewable energy sources, reducing dependence on fossil fuels and making farming more resilient to fluctuations in oil prices.

Government Initiatives To Promote Electric Tractors

Governments are recognising the potential benefits of electric tractors and are implementing a range of policies and incentives to encourage their adoption in agriculture. Some of these initiatives include:

Financial Incentives: To facilitate the transition to electric tractors, the Indian government has introduced several financial incentives. These incentives include subsidies, grants, and tax benefits aimed at reducing the upfront cost of electric tractors. By making electric tractors more affordable, the government aims to encourage more farmers to invest in this eco-friendly technology.

Tax Credits: Tax incentives and credits can significantly reduce the overall cost of electric tractors, making them more attractive to farmers. These tax breaks can apply to both the purchase of the tractors and any necessary charging infrastructure.

FAME Scheme: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, launched by the Indian government, extends its benefits to electric tractors. Under the FAME scheme, financial incentives are provided to manufacturers, dealers, and consumers of electric vehicles, including tractors. This initiative significantly reduces the cost of electric tractors and helps in accelerating their adoption.

Research and Development Funding: Government of India is allocating resources towards research and development of electric tractor technology. This includes funding for innovative projects aimed at improving the efficiency, range, and capabilities of electric tractors. By fostering innovation, governments aim to accelerate the development and adoption of advanced electric tractor solutions.

Infrastructure Development: A crucial aspect of transitioning to electric tractors is the establishment of a robust charging infrastructure. Indian government is investing in charging stations in rural areas and on farms to ensure that farmers have access to reliable and convenient charging facilities. This infrastructure development is essential for overcoming range anxiety and ensuring seamless adoption.

Regulatory Support: Clear and supportive regulatory frameworks play a pivotal role in fostering the adoption of electric tractors. The Indian government has been proactive in enacting policies that provide favorable conditions for the import, sale, and operation of electric tractors. Policymakers are revising regulations to facilitate the use of electric tractors, including updating safety and emission standards and ensuring that electric tractors are subject to reasonable and appropriate vehicle classification and taxation.

Public Awareness Campaigns: Governments are also conducting public awareness campaigns to educate farmers about the benefits of electric tractors and the available incentives.

Demonstration Projects and Pilot Programs: The government is initiating demonstration projects and pilot programs to showcase the benefits of electric tractors. These initiatives allow farmers to experience the advantages of electric technology firsthand, often through subsidised trials. By providing practical exposure, governments aim to build confidence in electric tractors among farmers. 

Capacity Building: Transitioning to electric tractors requires skill development and training. The government is investing in programs to equip farmers and operators with the necessary knowledge and skills to operate and maintain electric tractors effectively.

Collaboration with Industry Stakeholders: Government agencies are collaborating with agricultural machinery manufacturers and industry associations to drive the development and deployment of electric tractors. These partnerships can lead to the creation of tailored solutions that meet the specific needs of farmers, thereby accelerating adoption.

Training and Education: Transitioning to electric tractors requires a certain level of knowledge and expertise. Governments are investing in training and educational programs to equip farmers with the skills needed to operate and maintain electric agricultural machinery. This support ensures that farmers can effectively utilize electric tractors to enhance productivity.

In Conclusion

The Indian government’s efforts to promote the adoption of electric tractors in agriculture are critical for the nation’s sustainable development. Through financial incentives, research funding, infrastructure development, and regulatory support, India is taking significant strides toward making electric tractors a common sight in its farmlands. 

By collaborating with industry stakeholders, providing training, and creating a conducive policy environment, the government is empowering farmers to embrace this transformative technology. As these policies and incentives evolve, India’s agricultural sector is on the path to becoming both more productive and environmentally responsible. 

The post Powering Indian Agriculture: Government Initiatives To Promote Electric Tractor Adoption appeared first on Inc42 Media.

Agritech startup DeHaat, which counts Peak XV Partners (formerly known as Sequoia Capital India and Southeast Asia) and Sofina Ventures as its marquee investors, has acquired the fruit export business of Ahmedabad-based listed fruit export firm Freshtrop Fruits in an all-cash deal. The financial terms of the deal have been kept under wraps.

Under the deal, DeHaat has absorbed Freshtrop’s export network and grading, packing and precooling centres, and manpower, including the top leadership team, into its ecosystem, it said in a statement.

Founded in 1992 by Ashok Motiani and his family, Frestrop exports grapes and other fruits, including pomegranate and mango, from India to countries including the UK and the ones that fall under the European Union, among others. 

Over the last 25 years, the company claims to have continuously invested in innovative technology and operates out of two packhouse facilities in Maharashtra. 

This is DeHaat’s seventh acquisition, and it aims to fully leverage the rapidly growing Indian export market to provide better market access and price discovery to Indian farmers, the statement added.

DeHaat’s cofounder and CEO Shashank Kumar said that this investment aligns with the startup’s vision to not only boost the grape exports from India but also develop research and development capabilities to grow new varieties of grapes, offering improved value propositions to farmers across the western India.

“We established our export business 18 months ago and are today exporting more than 20 agri-produce from India to the Middle East, UK & EU. We see strong synergies around the complementary core competencies between DeHaat & Freshtrop,” Kumar said. 

He added that Freshtrop’s employees, along with the founding family and its external stakeholders will continue to remain actively involved in the business as they were. Meanwhile,   the company will be able to leverage DeHaat’s network and resources for market expansion, technology for the development of new grape varieties and technology-led deeper pre-harvest support for farmers.

Founded in 2012 by Amrendra Singh, Shyam Sundar, Adarsh Srivastav and Shashank Kumar, Patna and Gurugram-based DeHaat offers end-to-end agricultural services to farmers. Its services include the distribution of high-quality agri-inputs, customised farm advisory, access to financial services and market linkages for selling their produce.

Since its inception, the startup claims to have served over 2 Mn farmers across 11 states in India through its digital network of over 11,000 ‘DeHaat Centers’.

The startup said in the statement that it boasts a network of over 1,500 stock-keeping units, delivering over 15,000 orders per day to more than 15 countries. 

Through this partnership, the startup aims to offer its full-stack agri services, including high-quality inputs, personalised advisory, financing, insurance & access, to wider global markets. 

Interestingly, the announcement comes after the startup reported an over 253% YoY rise in its FY22 loss to INR 1,563.9 Cr. Last year, DeHaat secured $60 Mn in a Series E round, which took the total amount raised in the round to $106 Mn.

The post Peak XV Backed DeHaat Snaps Up Fruit Export Business Of Freshtrop appeared first on Inc42 Media.

In a world where industries are constantly evolving thanks to technological advances, it’s clear that Indian farmers are now poised to benefit from the latest innovations in agriculture. Drones, in particular, have emerged as a game-changing technology with the potential to transform the way farming is done in India. 

Experts who understand the field are confident that integrating drones into various agricultural activities could be a total game-changer for Indian farmers. According to their insights, the use of drones in farming is projected to grow at an impressive rate, with a Compound Annual Growth Rate (CAGR) of 38.5%. 

This growth is expected to push the size of the industry past a significant milestone, reaching over $121 million by the year 2030. In practical terms, this means that drones are on the path to becoming a significant part of the overall spending on agricultural machinery in the country, accounting for roughly 2%. 

Here are some of the reasons why drone services are embraced and could revolutionise the agricultural sector:

Drones Revolutionising Agricultural Performance And Productivity

The incorporation of drones into agriculture is driving a transformative shift towards improved performance and heightened productivity. Drones serve as indispensable tools in various key facets of farming, encompassing irrigation monitoring, crop health assessment, damage mitigation, field soil analysis, precise planting, and efficient agricultural spraying. 

These applications are executed with an unprecedented level of accuracy, reducing the necessity for extensive human labor. This technological integration translates directly into elevated production capabilities for farmers. 

By harnessing drones for tasks such as irrigation management and crop monitoring, farmers gain access to invaluable data, empowering them to make informed decisions and respond rapidly to environmental changes. As a result, agricultural output experiences a substantial boost.

Drones Can Help Cut Costs Significantly

One of the most exciting perks of bringing drones into Indian agriculture is the significant cost savings they offer to our hardworking farmers. Drones can be real game-changers by pinpointing areas on the farm that need attention, which means less manual labor and a decrease in the use of pricey pesticides and chemicals. 

They’re like high-tech farm assistants, taking on tasks like monitoring crops and keeping pesky pests in check, tasks that used to require a lot of time and effort. These smart machines automate these processes and give farmers access to real-time data, helping them make better decisions. 

In the end, this cost-effective approach isn’t just beneficial; it’s a lifeline for small-scale and resource-strapped Indian farmers, giving them the tools they need to run their farms efficiently and boost their profits.

Pollination With The Help Of Drones

Drones are revolutionising agriculture in India, expanding their role beyond monitoring and crop spraying to tackle the critical issue of crop pollination, particularly as bee populations decline. 

These innovative pollinators are equipped with specialised payloads, ensuring efficient pollen dispersion and abundant harvests even in the absence of natural pollinators. This technological leap not only signifies the evolving role of technology in Indian agriculture but also demonstrates drones’ ability to efficiently cover vast agricultural landscapes. 

Simultaneously, in the Netherlands and Japan, researchers are actively developing small drones for plant pollination, with the ultimate goal of creating autonomous pollinating drones capable of independently managing crop health, reducing the need for constant manual oversight. 

These advancements are reshaping farming practices and bolstering food security on a global scale.

Drones Safeguarding Farmers And Empowering Data-Driven Agriculture

With agriculture employing nearly 55% of India’s population, sustaining the livelihoods of around 0.70 billion individuals, ensuring safety and efficient decision-making is paramount. Tasks such as pesticide management in challenging terrains, tackling crop infections, navigating through tall crops, and avoiding power lines can pose serious risks to farmers. 

Drones have emerged as a groundbreaking solution, making these activities safe and streamlined. Furthermore, drones offer the invaluable advantage of swiftly gathering diverse data, readily accessible via smartphones. This real-time data analysis empowers farmers to make informed decisions without hesitation. 

Drones can be programmed to focus on various parameters, including crop health, moisture levels, and the identification of issues like infected or unhealthy crops. This fusion of data analytics and drone technology significantly enhances overall crop management, safeguarding farmer well-being and enhancing agricultural productivity.

Government-Supported Drone Integration

The growing integration of drones in Indian agriculture is largely attributed to robust government support. To modernise the sector and facilitate farmers’ access to drone technology and data management, the central government has introduced measures such as offering a substantial 40% assistance from Custom Hiring Centres (CHCs). 

This reflects a positive perspective, emphasising the enhancement of agricultural quality and a reduction in the cost of drone-related services for farmers. Through a combination of incentives and policies, the government actively encourages farmers to adopt drones for tasks like crop monitoring, pesticide management, and even pollination, leading to increased agricultural yields. 

This proactive approach enhances both farmer safety and productivity, while simultaneously improving overall crop management. With ongoing government backing and investments in research and development, drones are set to play a pivotal role in ensuring food security and sustainable agriculture in India.

Conclusion

The advent of drone technology marks a transformative moment for Indian agriculture. Drones have the potential to enhance agricultural practices by aiding farmers in vital activities and optimising data management, leading to increased per capita output and improved decision-making. 

As drones soar in the agricultural sector, they empower farmers to expand and thrive, supported by government initiatives to modernise agriculture. This promising technology promises a more efficient and prosperous future for Indian agriculture.

The post Revolutionising Agriculture: How Drone Services Are Transforming Farming appeared first on Inc42 Media.

Agriculture 4.0 embodies the fourth agriculture revolution that makes use of digital technologies and has shifted toward a smarter, more environmentally responsible, and more resourceful agriculture sector. 

Agricultural technologies have emerged to enhance sustainability and discover more effective farm methods. This encompasses all digitalisation and automation processes, including artificial intelligence (AI), robots, big data, the Internet of Things (IoT), and virtual and augmented reality. 

From a real-world perspective, it brings us to precision agriculture.

Precision Farming Software-as-a-Service (SaaS)

Precision farming software-as-a-service (SaaS) is playing a significant role in transforming the sector. As per a report by EMR, the Indian agriculture market was valued at $435.9 Bn in 2022. It is further anticipated to grow at a CAGR of 4.9% between 2023 and 2028 and reach a value of $580.82 Bn by 2028.

Furthermore, the TechSci Research report “India Precision Agriculture Market by Technology, By Component, By Application, By Region, Competition, Forecast, and Opportunities, 2025” highlighted that India’s precision agriculture market is projected to grow at over 10% to reach $99 Mn by 2025 due to increasing apprehensions for food security and growing demand for maximizing yields.

Precision agriculture offers a data-driven strategy for efficiently growing and sustaining crops on cultivable land, allowing farmers to use most of the resources at their disposal. Even in the supply chain, daily operations generate a huge amount of data. 

Most of this information was previously untouched, but with the help of big data technologies, such information can be used to advance the performance and production of any crop. Depending on the crop type and its growth needs, digitised harvesters can help deal with vast areas in diverse situations, predominantly agriculture.

Emerging Technologies In Precision Farming For Indian Agriculture

Technologies such as remote sensing are becoming pivotal in gathering crucial data on soil moisture, crop health, and crop yields. Remote sensing enables farmers to monitor large areas efficiently, which is facilitated by satellite imagery and ground-based sensors. It offers actionable insights into the condition of their crops and soil.

Furthermore, drones are becoming a cornerstone of modern agriculture. They can be employed for various purposes, such as crop monitoring, aerial surveys, and even spraying pesticides. Drones are also crucial for collecting valuable data, helping farmers assess crop health, growth patterns, and potential problem areas.

Also, geospatial technology has a significant role in generating maps and analyzing spatial data. These technologies help farmers better understand their land, plan irrigation systems, and optimise planting patterns based on soil variability and topography.

In addition, machine learning algorithms are helping to examine intricate datasets to make predictions about various factors, such as crop yields. These insights empower farmers to make informed decisions about planting times, fertilisation, and pest control, ultimately leading to improved productivity.

Artificial Intelligence-driven automation is also helping to manage agricultural tasks more efficiently. AI-powered systems can automate irrigation, predict disease outbreaks, and optimize resource allocation, making crop management more precise and effective.

The adoption of precision farming technologies is driven by the need to enhance crop yields, enhance sustainability and reduce input costs. The government of India is also actively promoting the adoption of these technologies through various policies and schemes.

Precision Farming SaaS: Key Benefits

Precision farming can boost crop yields, ensuring that farmers can produce more food with the same amount of land. It can also help bring down input costs as resources like water, pesticides and fertilisers are used more resourcefully. 

Moreover, by minimising water and chemical usage, precision farming enhances sustainability and reduces the environmental impact of agriculture. 

Furthermore, precision farming arms farmers with real-time data and insights, enabling them to make informed decisions about crop management, leading to improved productivity.

To conclude, the adoption of emerging technologies and SaaS for precision farming is still in its early stages in India, but it is growing rapidly. With the sector witnessing high technological advancements that are affordable, it is set to revolutionize Indian agriculture, making it more efficient, sustainable, and productive.

The post Agriculture 4.0: How New Age Tech Is Shaping The Future appeared first on Inc42 Media.

Agritech startup Ergos has raised $10 Mn through a mix of equity and debt in its Series B funding round. The funding round was led by Norway-based Abler Nordic, and existing investors such as Aavishkaar Capital, Chiratae Ventures, and Trifecta Venture Debt Fund.

Founded in 2012 by Kishor Kumar Jha and Praveen Kumar, Ergos has revolutionised grain storage by enabling farmers to transform their produce into digital assets that can be traded. This approach allows farmers to capitalise on ideal selling times after harvest. 

Additionally, the agritech startup connects farmers to potential buyers, provides secure warehouse storage for grains, and facilitates affordable financial solutions via partnering lenders.

It offers farmers 9-month storage for their harvest and grants credit on up to 70% of the stored grains.

Presently, Ergos aids more than 160,000 farmers through its platform, boasting a vast Grainbank network of farm-gate warehouses in over 200 locations across Bihar, Karnataka, and Maharashtra. Over the years, the firm has assisted farmers in boosting their annual income by 30-35%.

It offers farmers 9-month storage for their harvest and grants credit on up to 70% of the stored grains.

In 2021, Ergos secured INR 81 Cr from CDC Group, Aavishkaar Capital and Chiratae Ventures, in its Series A funding round.

India is home to over 1,000 agritech startups that have collectively garnered over $2 Bn in funding since 2014. According to a MarketsAndMarkets study,the agritech market is estimated to reach $25.4 Bn by 2028 at 9.4% CAGR.

Recently, yet another agritech startup Leads Connect raised INR 500 Cr from BL Agro Industries to shore up its tech stack and scale research in deeptech and AI/ML domains.

In June, NABARD-backed agritech investor NABVENTURES invested INR 10 Cr in Satyukt Analytics to enable Satyukt to improve its Sat2farm app which empowers farmers with data-driven insights.

The post Agritech Startup Ergos Secures $10 Mn Series B To Digitise Grain Storage appeared first on Inc42 Media.

Agritech startup Ninjacart has forayed into the Brazilian market through a partnership with Arado, an agribusiness marketplace in Brazil.

The partnership will facilitate seamless connections between farmers, retailers, and consumers, revolutionising the agri-commerce sector in Brazil. It aims to establish a new standard in Brazilian agri-commerce, with a focus on major cities such as Belo Horizonte, Rio de Janeiro, Campinas, and São Paulo, Ninjacart said in a statement.

The partnership was done through Ninjacart’s venture funding arm Ninja Ventures.

“Our strategic alliance with Arado perfectly embodies our vision of revolutionising agri-commerce globally. We are excited to share our state-of-the-art technology and advisory services to enable startups in Brazil and beyond, to establish efficient and sustainable supply chains,” said Ninjacart CEO and cofounder Kartheeswaran K K.

Victor Bernardino, founder and CEO of Arado, said the agribusiness marketplace aims to bring substantial benefits to Brazil’s agriculture sector by leveraging Ninjacart’s advanced technology and advisory services.

Founded by Thirukumaran Nagarajan, Sharath Loganathan, Sachin Jose, Kartheeswaran and Vasudevan Chinnathambi in 2015, Ninjacart initially started as a B2C business. However, it later pivoted to a B2B model, under which it currently sources fruits and vegetables from farmers and supplies to supermarkets, kirana stores and other retailers.

In 2022, Ninjacart raised about $9 Mn from South Korea based STIC Investment and Singapore-based Main Street Digital Life IV Pte Ltd. It is backed by marquee investors, like Tiger Global, Flipkart, Qualcomm Ventures, and Accel. The startup has raised $358 Mn in funding to date.

Ninjacart’s net loss narrowed 70% to INR 307.9 Cr in the financial year ending March 31, 2022 from INR 1,023 Cr in the financial year 2020-21 (FY21). Operating revenue grew 1.2X to INR 967.3 Cr from INR 755 Cr in FY21.

The post Flipkart-Backed Ninjacart Expands To Brazil appeared first on Inc42 Media.

At a time when an increasing number of Indian startups are trying to be in the black, the cofounder of Country Delight, Chakradhar Gade, has said that the dairytech startup is also not far from reaching the profitability milestone.

“We are currently an almost $200 Mn revenue company, and the business is growing at 5-7% month-on-month. We are on the clear path to profitability in the next 8-10 months,” Gade said while speaking at the fourth edition of Inc42’s D2C summit.

Country Delight currently serves 15 cities in India. As shared by Gade, the startup makes almost 10 Mn monthly deliveries to more than 5 Lakh subscribers across the cities it operates in.

During the session, Gade talked about his fascination with the traditional Indian milkman system. The initial hypothesis of Gade and his partner, Nitin Kaushal, centred around the concept of a full-stack business model, where they aimed to own the entire supply chain, from the farm to the customer.

One of the intriguing aspects of their approach was viewing cattle as a non-depreciating asset, as they only multiply over time. This perspective meant they could potentially grow the business without external capital infusion.

According to Gade, the core mission of the startup is to provide superior quality products to customers, cultivate customer loyalty, and add value to people’s lives.

Country Delight began its journey as a bootstrapped venture and dedicated the first 5 to 6 years to laying the foundation. The cofounders focussed on critical elements such as building technology to digitally monitor quality at the source, establishing a reliable supply chain with real-time visibility, and creating a proprietary distribution network capable of scalable operations.

Founded in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight follows a subscription-based model where it sources milk from farmers and delivers it to customers. It also supplies bread, ghee, other dairy products, and fruits and vegetables.

Since its inception, the startup has raised more than $158 Mn and is currently valued at over $600 Mn. It counts Orios Venture Partners, Elevation Capital, and Temasek among its investors.

Country Delight’s net loss increased 6.5X to INR 186.4 Cr in the financial year 2021-22 (FY22) from INR 28.2 Cr in the previous fiscal year due to a sharp increase in its expenses. The Delhi NCR-based startup’s revenue from operations rose 1.6X to INR 542.6 Cr in FY22 from INR 320.7 Cr in FY21.

The post Country Delight To Become Profitable In The Next 8-10 Months: Cofounder Chakradhar Gade appeared first on Inc42 Media.

Dairytech startup Country Delight’s net loss ballooned over 6.5X to INR 186.4 Cr in the financial year 2021-22 (FY22) from INR 28.2 Cr in the previous fiscal year due to a sharp increase in its expenses.

The Delhi NCR based startup’s revenue from operations rose 1.6X to INR 542.6 Cr in FY22 from INR 320.7 Cr in FY21.

Country Delight generates revenue from sale of milk and other products like curd, paneer (cottage cheese), ghee, eggs, fruits, vegetables, and coconut water.

In FY22, it earned INR 367.8 Cr from sale of milk as against INR 251.8 Cr in FY21, while the sale of other products generated revenue of INR 171.3 Cr as against INR 68.2 Cr in the previous fiscal year.

Total income, including other income, rose 68% to INR 547.2 Cr in FY22 from INR 325.6 Cr in the previous year.

Meanwhile, total expenses more than doubled to INR 733.7 Cr from INR 353.9 Cr in FY21. At INR 288.2 Cr, cost of materials consumer accounted for the biggest chunk of expenses, rising 56.8% from INR 183.7 Cr in FY21.

The startup also spent heavily on promotion in FY22. Promotional expenses rose almost fivefold to INR 124.6 Cr from INR 25.3 Cr in FY21.

Employee benefit expenses grew 78.7% to INR 67.4 Cr from INR 37.7 Cr in FY21. Employee benefit expenses comprise employees salaries, PF contribution, and other employee welfare benefits.

An increase in employee welfare benefits is an indication of the increase in employee headcount. As per Linkedin, Country Delight has over 1,000 employees.

Founded in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight follows a subscription-based model where it sources milk from farmers and delivers it to customers’ doorsteps. It also supplies bread, ghee, other dairy products, fruits and vegetables. 

The startup has raised over $158 Mn till date and was last valued at over $600 Mn. It counts Orios Venture Partners, Elevation Capital, and Temasek among its investors. 

Country Delight competes with Odisha-based Milk Mantra. Milk Mantra’s revenue grew 48% to INR 271 Cr in FY22 from INR 182 Cr in FY21, while its profit dropped 36% to INR 13.6 Cr from INR 21.3 Cr in FY21.

Besides, Country Delight also competes against Reliance Retail-acquired Milk Basket, which is likely to see the exit of over 100 employees as it integrates with JioMart. 

The post Country Delight’s FY22 Loss Surges Over 6X To INR 186 Cr appeared first on Inc42 Media.

It may sound strange but in the ever-growing world of technology, robots have evolved to keep us well fed. With such technological advancements, it is possible to imagine being able to sit back and relax after a hectic day at work while a robot chef prepares your favourite meal as nutritious and tasty as home-cooked food.

Bengaluru-based startup Euphotic Labs, aka Nosh, is developing AI-enabled robots that can follow commands, cooking instructions, and prepare food, giving you a much-needed respite from your daily hustles. 

Founded in March 2018 by Yatin Varachhia, Sudeep Gupta, and Amit Kumar Gupta, Nosh is looking at serving the economically well-to-do migrant population of metropolitan cities to sell its cooking robots to make their life easier, bestowing them with the joy of home-cooked meals.

At a time when robots, equipped with different capabilities, are increasingly gaining popularity among restaurants, food chains, cloud kitchens, and homes, Nosh could emerge as one of the pioneering players in the highly lucrative robot kitchen market, which, as per a report, is expected to reach $4.4 Bn in size by 2028, growing at a CAGR of 12.6% between 2021 and 2028.

The Craving That Gave Birth To Nosh

The idea to build a machine that can cook food at home took shape a few years ago when both Varachhia and his wife were struggling to find time to cook at home due to their hectic work schedule and had no option but to hire help to prepare meals for them. 

The couple was surprised to find that several other families, too, were sailing on the same ship and struggling to find time to enjoy cooking and savour the true flavours of food cooked with love and care.  

Despite employing the help to cook meals for them, the only thing that was missing was the flavours to satiate their taste buds. This was another pressing issue as the Gujarati couple would often crave authentic Gujarati cuisine, but the flavours largely remained missing from their lives in Bengaluru. 

Unable to find a straight solution to satisfy their desire for authentic Gujarati cuisine, Yatin started building Nosh, a machine that can truly automate the entire cooking process, paving the way for Euphotic Labs.

Nosh allows users to load ingredients (veggies, oil, water, etc.) in the machine as per the requirement of a recipe. Once users command it to cook, the device starts cooking as per an individual’s taste and requirement.

It comes with a mobile app through which users can command Nosh’s cooking robot to customise any dish. The device comes with pre-loaded recipes and cooks over 100 of them in cuisines including Italian and Indian.

The device comes with a camera, which helps the AI-powered machine cook perfect meals and healthy treats. The Nosh machines are powered by the startup’s in-house AI and can cook anything that requires a pan or a pot.

Nosh’s Journey To Finding Product-Market Fit

In 2018, Nosh did its first proof of concept but there was a lot of scope for further improvements. Since then, the machine has undergone several tweaks and user trials — both in terms of hardware and AI. Currently, the startup is working on its seventh prototype.

Initially, Nosh built its product for the broader consumer market. However, in 2019, the startup joined hands with cloud kitchens listed on Swiggy and EatFit to automate their operations. 

Varachhia explained that with profitability becoming the major focus for these cloud kitchen startups, they adopted the cold chain method rather than cooking fresh food, which ended the use case for Nosh in the cloud kitchen space.

In mid-2020, Nosh reverted to building for the consumer market. “We have received a good response from the consumer market and have been able to pre-book 1,000 orders from across India while there are more than 4,500 people on the waiting list. We have been able to secure these orders with zilch marketing spends,” Varachhia said. 

Nosh has charged INR 40,000 per customer for its pre-orders, however, the machines (the cooking robot) are expected to cost INR 50,000 apiece once they are floated in the market. The startup is planning to first start with the delivery of its pre-orders from October this year.

While Nosh has taken the onus on itself to deliver the first lot of pre-orders to its customers, it eventually has plans to sell its cooking robots via various ecommerce platforms like Flipkart and Amazon.

With just $1 Mn in seed funding raised so far, the founders claim to have kept their R&D costs low. Nosh’s cap table includes names like BITS Spark, SuperMorpheus, and a few other angel investors.

Besides, the startup’s working capital is largely driven by pre-orders. Further, the startup’s machines are made at different contract manufacturing facilities. 

What’s Next?

In 2024, Nosh aims to make and deploy 5,000 cooking robots but the projections are heavily dependent on the supply chain. The startup is not looking to raise any funding this year due to weak market sentiments. 

Meanwhile, Nosh is working on training its AI robots in more Indian recipes and adding a multi-cuisine menu to the already-impressive list of food items that it can make.

In the kitchen robotics market, Nosh competes with Bengaluru-based Nymble and its cooking robot Julia, and another startup Mechanical Chef. 

Besides, in the US and European markets, several players, including Samsung, HeroX, NVIDIA, Sony, Miso Robotics, and Moley have launched kitchen robots.

As per a report, North America and Canada are leading the markets for AI-powered kitchens and robotic chefs. Among South Asian countries, India, China, Japan, Malaysia and Singapore are leading the demand for automated chefs and cooking robots.

While there is a huge scope in the global market, it will be interesting to see if Nosh can play its cards right and capture a juicy chunk of this lucrative sector in the years to come.

The post How Nosh’s AI-Powered Robot Chefs Are All Set To Transform Indian Kitchens appeared first on Inc42 Media.

Accel-backed agritech startup Mooofarm has responded to allegations of embezzlement, revenue inflation and fake employees raised by its former finance head Vineet Bhati, claiming that its criminal complaint predates the one made by Bhati.

Further, the company has denied Bhati’s claims and maintained its stance around the allegations raised in its complaint.

“Mooofarm terms their former finance head’s allegations as baseless with no evidence to back it. He was the sole authority to make payments and the founders had no knowledge. In addition, the company’s financials are fully audited till 2021-22 and we are fully compliant with our processes,” the company told Inc42 in response to Bhati’s allegations.

Last week, Gurugram-based Mooofarm revealed that it had filed a criminal complaint against Bhati for allegedly embezzling INR 10 Cr from the company and investing them for personal gains. Bhati fired back with his own set of allegations and claimed that instead, the founders were inflating revenue and growth with fake employees and fake customers.

While the matters in both cases are yet to be accepted as first information reports (FIR), Mooofarm claims that it had filed a preliminary complaint against Bhati on July 10, 2023. The company told us that it was able to ascertain more facts after this and file a more detailed complaint with the Gurugram police on July 20, 2023.

Earlier, responding to Mooofarm’s allegations, Bhati had countered saying his police complaint, dated July 13, 2023 was filed before Mooofarm. But this is not the case as per Mooofarm’s latest comment to Inc42.

Mooofarm’s preliminary police complaint was based on an analysis of the company’s current accounts, which show that Bhati made several transactions from this account to his personal accounts from December 2022 to May 2023. An analysis of Bhati’s account showed the corresponding entries from Mooofarm’s accounts and then deposits to investment brokerage accounts.

Mooofarm maintained its original allegation that Bhati was using the company’s funds to invest in derivatives and options. Sources close to the company now claim the total amount withdrawn from the accounts is over INR 45 Cr, which could eventually be attached to the case.

Bhati did not respond to questions from Inc42 about the basis for the claims raised in his complaint against the Mooofarm founders. It must be noted that these claims were only raised after we had originally published Mooofarm’s allegations.

The former finance head also did not respond to questions about the bank statements showing withdrawals with his name in the transaction remarks.

It must be noted that Bhati had raised these allegations in emails to these key shareholders in mid-July 2023. Inc42 has seen those emails, but Mooofarm’s investors Accel, Aavishkaar Capital and Navus Ventures did not comment on the situation.

Will Mooofarm Controversy Boil Over? 

Founded in 2019 by Paramdeep Singh, Aashna Singh, Jitesh Arora and Abhijeet Mittal, MoooFarm offers a dairy-as-a-service full-stack platform where farmers can buy cattle and other livestock for dairy farming, access telehealth and balanced nutrition services from veterinarians that are said to increase milk yield, and also get financing aid to manage operations and buy dairy inputs.

Till date, the Gurugram-based startup has raised over $16 Mn from investors such as Accel, Aavishkaar Capital, Aditya Birla Ventures, Rockstart, Navus and others.

Bhati was one of the first employees of the company, having been on board since July 2019 till earlier this year when he said he resigned from the company.

While the embezzlement allegations against Bhati and his subsequent claims of revenue inflation by Mooofarm management have already put both parties at loggerheads, there were more allegations raised by the former finance head.

At one point during his stint in the company, Bhati was classed as a promoter and held 5,000 equity shares in the company till September 2021.

In May 2021, he transferred 3,200 shares to Australian LLC DoGoodles Pty Ltd, followed by 1,200 shares transferred to cofounder Mittal and 600 shares to cofounder Arora in September 2021. Essentially, at the end of FY22, he held zero shares in the company and his remuneration for the year was INR 14 Lakh.

Talking about this, Bhati alleged that “the management without knowledge, consent and intimation transferred 5,000 shares in their name (at a per share price of INR 23, however the value per share was INR 60,000 approx at that time) and removed me from the post of Director.”

But we were not given any further evidence of such a forced dilution of his shares. Mooofarm did not respond to questions about the shares being transferred to two of the cofounders.

While the company has alleged embezzlement, it’s not clear if it will be able to recover any of the money alleged to have been moved by Bhati.

In FY22, Mooofarm reported INR 50.73 Cr in revenue from operations, a near-50X jump from the INR 1.2 Cr revenue stated in FY21. The company remained in the red despite scaling up its revenue. Losses for FY22 grew to INR 14.84 Cr, a 5X jump from FY21’s INR 3.2 Cr loss.

Will the loss of working capital due to the alleged fund syphoning prove to be detrimental to the business in the medium term?

The post Mooofarm Denies Ex-Finance Head’s Allegations Of Fake Revenue  appeared first on Inc42 Media.

It has been a few years since those of us in the industry realised that AI and machine learning (ML)  have transformed agriculture and the way we think about farming. In India, we are seeing the use of ML models in everything from grocery delivery to banking. And we are on track to see the potential of AI and ML in farming explode, revolutionising the sector, particularly in a largely agrarian economy like India. 

The adoption of AI and ML in Indian agriculture will have far-reaching consequences, ranging from increased productivity, lower costs, and better decision-making to businesses being able to deliver fresh produce that meets their customers’ needs and specifications. 

To illustrate, consider the recent trend of consumers ordering fruits and vegetables online. It is unlikely that fresh produce, 12-15 hours post-harvest, will be delivered to you when you order something that is not native to a place or is from afar. The produce you receive is most likely from stored stock. 

One solution is to harvest and take customer orders almost simultaneously, allowing only the freshest produce to arrive at your door. A powerful AI-powered prediction engine forecasts the demand for each type of produce for the following day, regulating harvesting, wastage (which is about 30-40% in traditional methods, about 3% with precision-modelled prediction engines), and eventually production. 

These ML models allow for a super-efficient way of working that puts the producer, the farmer in this case, as well as the customer at the centre of this experience. 

Precise Farming With AI & ML

A plethora of opportunities await Indian farmers as the use of AI and ML models becomes more widespread. One of the primary benefits of using these models in agriculture is that they allow for more sustainable and precise farming methods. From soil health, crop yields, and weather patterns to pest and disease management, this is the direction to take when considering not only ML models but also AI-powered tools. 

Farmers’ traditional wisdom occasionally fails them in a world of rapid climate change and disrupted rain patterns. In this case, AI and ML models can assist farmers in optimising planting patterns, determining the appropriate amount of fertiliser and irrigation, and detecting issues before they become major issues. AI and ML models can be used to empower farmers, allowing them to make more informed decisions that will lead to healthier ways of increasing productivity and profitability. 

Building Healthier And More Profitable Crops With Precision Data

Today, AI and ML models are most useful to farmers in the pre-harvest stages. Agriculture, as an activity and an industry, is dependent on a variety of factors in order to be successful. On the farming side, obvious factors such as irrigation, soil type, fertiliser requirements, seed quality, sowing time, disease manifestation, nutrient deficiency, and so on are critical for crop production. Farmers judge and decide on all of these factors based on wisdom and skills passed down to them or their own experience. 

According to research, many of these methods and conclusions are incorrect, and there are large gaps between this traditional knowledge and what is actually happening on the ground. So, if this data is collected and analysed and cause and effect are established, it will improve crop productivity and production in the country. 

In fact, you may already be seeing fresh produce that has been grown using data-driven methods such as hydroponics and aeroponics. The data in these methods tell you when to increase moisture and when to boost with nutrients. The precision with which AI and ML can lay out this data helps build a healthy product as well as an efficient, economical, and profitable crop. 

Another aspect is fertilisers. Today, the push to use fertiliser is so strong that farmers do not even consider whether the crop requires it, how much is required, and so on. It is de rigueur to dump fertiliser on a plant for a better yield. This practise has several negative consequences, including unsustainable crop production and soil degradation.

Bridging The Gap In Consumer Demand & Supply

Furthermore, having measures on the supply side is insufficient. On the demand side of the equation, there are consumers who want one thing and growers who produce something else. Today’s consumer buys what is available rather than what they actively want, and this information or data is rarely passed down to producers. A massive chasm that harms both consumers and producers! 

Closing this gap would entail learning about consumer behaviour — when they prefer to buy, what price point works best for them, in-season and off-season demand, and so on. The granularity of this data, when built into an AI model, aids in determining demand and making a full crop projection, which, when shared with farmers, assists them in growing new varieties of plants with minimal water waste. 

According to experts, the next major global crisis will be water scarcity. Agriculture, as we all know, is water-intensive, with hundreds of litres often going to waste on each farm every day. If ML models could predict how much water would yield the best yield and when we would be looking at not only the judicious use of precious water but also produce that is as it should be.

Predicting Demand & Reducing Waste

The stark contrast between India’s severe hunger issue and its significant problem with wasted fresh produce is one of the country’s biggest puzzles. India is one of the world’s top fruit and vegetable producers, but due to inadequate storage and transportation systems, a sizable portion of the produce is wasted. 

In order to predict demand, optimise logistics, enhance supply chain management, reduce food waste, and ensure that fresh produce reaches the market, data-rich AI and ML models should be thoroughly tested.

Overcoming Challenges: Fragmentation Of Landholdings

But like all technological progress, this too has challenges. A significant challenge facing Indian agriculture is the fragmentation of landholdings. Most farmers in India own small plots of land, making it difficult to adopt modern agricultural practices. 

AI and ML can help farmers make more informed decisions by providing them with data on weather patterns, soil conditions, and crop yields. This information can be used to optimise planting patterns, select the right seeds, and determine the appropriate amount of fertiliser and irrigation required. By leveraging this technology, small farmers can improve their productivity and profitability.

What About The Farmers?

However, the use of AI and ML in agriculture in India also raises concerns about the impact on employment. Agriculture is a labour-intensive industry, and the adoption of AI and ML could result in job losses for farmers and farm workers. 

This can have a significant impact on rural communities, where agriculture is the primary source of employment. It is crucial to ensure that the benefits of AI and ML are shared equitably and that measures are taken to mitigate the impact on employment.

Another concern is the cost of adopting AI and ML in agriculture. The high cost of technology and the lack of access to financing can be significant barriers for small farmers. It is essential to develop affordable and accessible solutions that can be easily adopted by small farmers. Government subsidies and support will play a crucial role in facilitating the adoption of AI and ML-driven tech in agriculture.

The post Striking The Balance: Can AI & ML Be The Answer To Indian Farmers’ Woes? appeared first on Inc42 Media.

UPDATE | July 27; 23:00 IST

Former Mooofarm head of finance Vineet Bhati has responded to the allegations of embezzlement and countered with more allegations about a total embezzlement of INR 45 Cr said to have been carried out by the “management of Mooofarm Pvt. Ltd.”

Bhati also said that he had filed a police complaint on July 13, 2023, a week before Mooofarm’s own complaint. Inc42 has seen a copy of this complaint which alleges that the company’s management was involved in fraudulent activities related to unauthorised investments and lost company funds in stock and derivatives (Future and Options) trading from January 2021.

He also alleged that management was using the personal bank account of other employees from August 2021 to June 2023 to create a fake revenue of INR 130 Cr, and that even investors were misled by these figures. Both these facts were also sent to fund managers of Mooofarm’s key investors, two days after the complaint by Mooofarm was filed. Inc42 has seen a copy of the email.

We have reached out to Mooofarm’s founders and the investors named above with more questions on the barrage of allegations. Watch out for our continuing coverage on Mooofarm.

We have updated our original story below with more details based on Bhati’s comments and his side of the story.

Agritech startup Mooofarm has filed a police complaint against Vineet Bhati, the company’s head of finance, for allegedly embezzling funds from the company’s accounts for personal gains.

According to sources close to Mooofarm, the alleged embezzlement was discovered in the beginning of July 2023, and is said to have been going on for the past 3-4 months. The complaint is said to have been filed with the Gurugram Police (Sector-5) on July 20, 2023.

Sources also told Inc42 that Bhati is said to have syphoned out more than INR 10 Cr from the dairy-tech startup and transferred it to his personal account as well as trading account associated with investing in derivatives and options.

The company declined to reveal the modus operandi of the alleged embezzlement or speak about how far back it goes but confirmed the development in a statement shared with Inc42, reproduced in full below:

“Mooofarm has filed a police complaint against its Head of Finance for embezzlement of an unspecified amount of money from their head office in Gurgaon. The employee in question unlawfully made multiple fund transfers from the Company’s bank account into his personal account using it to participate in trading of high-risk derivatives and options,” a Mooofarm spokesperson said.

The statement added “The employee in question has submitted his confession over email owning up to the fraud. Company has also obtained financial records of the illegitimate transactions and has submitted the details in the police complaint. Mooofarm takes this incident extremely seriously and will make every effort to prevent similar incidents from happening in the future. The Board of Mooofarm and its investors remain committed to building a world class Dairy-as-a-Service Agtech and are fully aligned with the steps taken by the management of the company.”

In his response, Bhati laid out allegations about the money being invested through Zerodha by Mooofarm founders Paramjeet Singh, Abhijeet Mittal, Jitesh Arora and Aashna Singh.

“They have intentionally done these investments to gain higher returns to pay off [dues] and restart their previous company namely AVTEG Pvt. Ltd. which is under the recovery proceedings from Punjab Govt, Jammu Govt, TDS Dept, PF Dept, Employee dues and Vendor dues for an amount of INR 15 cr approx,” Bhati told Inc42.

Mooofarm management’s complaint has not yet been registered as an FIR (first information report) by the police, we were told by our sources, and the actual amount alleged to have been embezzled might change in the final FIR as and when it is registered.

As is typical in such cases, law enforcement authorities conduct independent inquiries about the complaint before registering an FIR. Police can only take action against any alleged fraud once the FIR has been registered.

Depending on the severity of the allegations and the police’s findings at this stage, the potential FIR may be transferred to financial crime divisions.

Vineet Bhati’s Long Association With Mooofarm

Founded in 2019 by Param Singh, Aashna Singh, Jitesh Arora and Abhijeet Mittal, MoooFarm offers a dairy-as-a-service full-stack platform where farmers can buy cattle and other livestock for dairy farming, access telehealth and balanced nutrition services from veterinarians that are said to increase milk yield, and also get financing aid to manage operations and buy dairy inputs.

Till date, the Gurugram-based startup has raised over $16 Mn from investors such as Accel, Aavishkaar Capital,  Aditya Birla Ventures (ABV), Rockstart, Navus Ventures as well as venture debt fund Alteria Capital. Its most recent round was a Series A in December 2022.

While not a cofounder, Bhati was employed with the company ever since it was founded in July 2019. Given his tenure, he is likely to have been a key figure in the agritech startup’s growth in the past four years.

In FY22, Mooofarm reported INR 50.73 Cr in revenue from operations, a near-50X jump from the INR 1.2 Cr revenue stated in FY21. The company remained in the red despite scaling up its revenue. Losses for FY22 grew to INR 14.84 Cr, a 5X jump from FY21’s INR 3.2 Cr loss.

About the revenue, Bhati claimed that FY23 revenue had touched INR 120 Cr, but alleged that “90% of the revenue of the company is fake and illegal,” – Bhati.

Bhati’s response claims embezzlement was done through fake tech and marketing vendors, as well as fake employees where the money was being syphoned out of the company.

He further claimed revenue was being shown as coming in through several fake customers. Mooofarm’s founders are alleged to have not just used fake employees to send money out of the company, but also rotate funds in the company’s current account shown as sales and purchases of cattle through fake customers.

“During the day, they used to rotate the same funds multiple times. They started pressuring the finance team to reduce the TAT [turnaround time] between the funds receipt transaction and funds payment transaction so that rotation can be more in a day [sic]”

These allegations are seen in Bhati’s criminal complaint and also his email to investors in July 2023.

At one point during his stint in the company, Bhati was classed as a promoter and held 5,000 equity shares in the company till September 2021.

In May 2021, he transferred 3,200 shares to Australian LLC DoGoodles Pty Ltd, followed by 1,200 shares transferred to cofounder Mittal and 600 shares to cofounder Arora in September 2021. Essentially, at the end of FY22, he held zero shares in the company and his remuneration for the year was INR 14,00,000.

“The management without knowledge, consent and intimation transferred 5,000 shares in their name (at a per share price of INR 23, however the value per share was INR 60,000 approx at that time) and removed me from the post of Director acting in a dishonest and fraudulent manner and made me a Financial Head on 08.09.2021. The Management have misused and abused me only to get the financial benefit, advantage and personal gains,” Bhati alleged in his response.

How The Embezzlement Was Caught

Sources close to the company claim that so far there is no more action being mulled besides the police complaint. They added that the discrepancy was more easily discovered since these were transfers made by Bhati to his personal account.

“They (the management) saw some fabrication in the monthly income statements shared by Vineet (Bhati) with the shareholders. When questioned he is said to have confessed immediately,” said one of the sources who had first-hand knowledge of the development.

Additionally, we were told that investors such as Accel, Aavishkar and others were immediately informed, after which the police complaint was filed by the company’s founders.

But even Bhati has apprised Mooofarm’s investors about the alleged fraud, and amid this crossfire of allegations, we have to wonder what will happen to Mooofarm.

Our coverage of Mooofarm will continue through the next few days, at the very least. Stay tuned for a deeper story on the agritech startup.

Update Note | July 27; 23:00 IST

• We have changed the headline of this story. The original headline was: “Accel-Backed Mooofarm Alleges INR 10 Cr Embezzlement By Finance Head; Files Police Complaint”
• Some portions of the original article were removed based on Vineet Bhati’s responses.
• We have prominently highlighted the portions that include Vineet Bhati’s responses.
• The original version of the story claimed that Vineet Bhati was a director in the company till December 2022, when he resigned in October 2021. We regret this error.

The post [UPDATE] Accel-Backed Mooofarm Caught In Crossfire Of Embezzlement Allegations Between Founders And Finance Head appeared first on Inc42 Media.

Chennai-based B2B cross-border agri-commodity procurement platform Hectar Global on Wednesday (July 12) said that it has raised $2.1 Mn in a seed funding round led by  Powerhouse Ventures.

The funding round also saw participation from WEH Ventures, All In Capital, Indian Silicon Valley, and angel investors Anant Sarda and Adhish Ladha.

The startup will use the funding to expand to newer geographies, and strengthen its digital infrastructure. 

Commenting on the development, Hectar Global cofounder and chief executive officer (CEO) Srinath Srinivasan said, “We have maintained a strong emphasis on operating profitably right from our inception. Our internal accruals have taken care of all operating expenses so far and we are primarily viewing this capital infusion, and future equity rounds, to rapidly expand into new geographies, and strengthen our digital infrastructure.”

“Trading in agri-commodities requires deep domain expertise, given the inherent complexities in product qualities, price fluctuations, documentation, and freight.  We feel that the team’s experience in cross-border trade and their ability to build technology products holds them in good stead to create significant impact in this industry,” said General Partner at Powerhouse Ventures Kshitij Golwalkar.

Founded in 2021 by National University of Singapore alumni Srinivasan, Sibhi Kumaran, and Aswath Balaji, Hectar Global is a B2B ecommerce platform that enables wholesalers and retailers to procure agri-commodities in bulk across the globe. The platform claims to digitise and improve the efficiency of cross-border supply chain processes by leveraging data models and machine learning algorithms. 

With offices across the globe in Singapore, Dubai, Bangladesh, and Sri Lanka, Hectar Global claims to have so far shipped more than 50,000 metric tons of agri-commodities to countries across Asia, the Middle East, and Africa. 

While the cross-border agri-commerce segment is still marred by regulatory hurdles and involvement of multi-state stakeholders, the space presents an interesting opportunity for homegrown budding startups looking to go global and solve bigger challenges. 

This has largely been led by a lucrative market opportunity that the global agriculture ecommerce market presents. As per a report, the space was valued at $30.68 Bn in 2022 and is projected to grow to a size of $50.63 Bn by 2030.

In the recent past, a clutch of Indian new-age tech startups offering cross-border products have gained spotlight and secured big ticket capital from investors. 

Last month, homegrown cross-border payments solutions startup XFlow picked up $10.2 Mn in pre-Series A funding from Square Peg, Lightspeed, among others. In May, another Indian cross-border logistics platform Agraga secured INR 70 Cr in a Series A funding round led by IvyCap Ventures. 

Back in April, venture capital firm Iron Pillar also closed a $129 Mn cross-border fund that would invest in homegrown SaaS startups. 

The post Hectar Global Bags Funding To Digitise Cross-Border Agri-Commodity Trade appeared first on Inc42 Media.

Agritech startup WayCool has become the latest Indian startup to have laid off employees amid an ongoing funding winter, having reportedly fired 300 employees in a restructuring exercise.

According to sources cited by TOI, the startup, which has raised more than $350 Mn in funding, has conducted the restructuring to chase profitability.

WayCool is said to have around 2,500 employees. While some employees are said to have resigned, the remaining impacted employees were told that updates on the restructuring will be shared on Wednesday (July 12).

Karthik Jayaraman, the cofounder and MD of WayCool, is said to have informed the decision to the employees via a video address on Monday (July 10), adding that the company is working on achieving profitability by December. 

Apart from the layoffs, WayCool will also shut down some of its distribution centres and a few new experimental projects. Sources also told TOI that the agritech startup sent a communication to employees saying that the variable payout will be delayed.

“We plan to focus on our core and profitable businesses, slowing down on some of our experimental initiatives as we work to grow further. This will change the profile of our business but is aimed at ensuring a sustainable and long-term success of our enterprise,” a WayCool spokesperson told Inc42.

The layoffs at WayCool come after it raised $117 Mn from marquee investors including Lightrock, International Finance Corporation (IFC) and Redwood in January 2022, valuing the startup at around $700 Mn. The startup also secured nearly $47 Mn in two subsequent rounds during 2022 from 57 Stars and Stride Ventures.

WayCool is also said to be in talks to raise another funding round, between $50-70 Mn at a unicorn valuation. Speaking at Inc42’s ‘The Makers Summit 2023’ in March this year, WayCool cofounder Sanjay Dasari said that the company was mulling a 2025 public listing.

However, the agritech continues to rack up losses. In FY22, its net loss zoomed 142% year-on-year (YoY) to INR 360.5 Cr. However, operating revenue surged 2.4X to INR 926.9 Cr from INR 382.3 Cr in FY21.

Founded in 2015 by Jayaraman and Dasari, WayCool is a full-stack agritech platform that connects farmers looking to sell produce to retailers, traders and processors. It also offers SaaS products for clients across domains such as procurement, processing and warehousing and distribution, among others. 

India’s startup ecosystem is going through a rough patch of reduced funding and increased macroeconomic pressures. As investors continue to demand profitability from many marquee startups, many of them have resorted to layoffs.

Per Inc42’s ‘Indian Startup Layoff Tracker’, more than 100 startups have fired 27,300+ employees since the start of 2022, including names such as Ola, Swiggy, Zomato, BYJU’S, Vedantu and Unacademy, among others.

The post WayCool Joins Startup Layoffs Spree, Fires 300 Employees To Chase Profitability appeared first on Inc42 Media.

Walmart-owned fintech giant PhonePe has launched its point-of-sale (PoS) device that enables merchants to accept payments via debit cards, credit cards and UPI.

The fintech decacorn follows the likes of Pine Labs, BharatPe and Paytm, among others, who also offer similar PoS devices.

In a blog post, PhonePe said the Android-based PoS device comes preloaded by the PhonePe PoS app and supports transactions via tap/swipe/dip and interoperable dynamic QR codes.

The Walmart-owned fintech, which has raised $850 Mn so far this year, added that the PoS device has received the PCI-PTS 6 certification, safeguarding both merchant and consumer data. “With automatic batch closure and unified reconciliation, the device becomes a one-stop solution for account settlement,” added PhonePe.

The PhonePe PoS device includes a touchscreen display, a built-in printer allowing receipts printing, along with WiFi and 4G connectivity via a SIM card.

Merchants can use PhonePe’s PoS device at a monthly rental, similar to the subscription model which has become the industry standard for devices such as soundboxes, which announce a transaction after it has been received by the merchant.

Interestingly, this is PhonePe’s second payment device offering, having launched a soundbox of its own – the PhonPe SmartSpeaker – capable of announcing a transaction in 11 languages.

Speaking on the announcement, Vivek Lohcheb, head of offline business at PhonePe said, “The PhonePe POS device empowers our merchant partners to elevate the purchasing experience for their consumers. It features a unified and cohesive interface that supports various modes of payment, providing convenience and flexibility.”

Lohcheb added that the fintech giant has set a target to deploy 150K PoS devices by next year. To be sure, PhonePe claims to have a merchant base of 35 Mn across India.

PhonePe is entering a market rife with competition, as Pine Labs dominates the startup ecosystem when it comes to PoS devices. Paytm, its direct competitor, also has the same products. According to the listed fintech’s latest operational performance update, it has deployed 7.9 Mn soundboxes and PoS devices as of June 2023 quarter, a jump of 109% from 3.8 Mn in the year-ago quarter.

By comparison, the Walmart-owned fintech decacorn is said to have deployed 2-2.5 Mn soundboxes. According to the latest report by brokerage firm BofA Securities, PhonePe, BharatPe and Paytm are the three major incumbents in the soundbox market, with the first two being more aggressive in the market.

The launch of the PoS device also comes days after PhonePe launched its payment gateway and a merchant lending marketplace.

The post PhonePe Launches PoS Device To Take On Pine Labs, Paytm, BharatPe appeared first on Inc42 Media.

Agritech startup Waycool is reportedly in talks with multiple investors, including sovereign funds, impact funds, and family offices, to raise funding in the range of $50 Mn to $70 Mn.  

The deal is still in the works and it could still take an additional two to three months for the transaction to materialise, Entrackr reported citing sources.

As per the report, the agritech platform is likely to receive a post-money valuation in the range of $900 Mn, and may even cross the $1 Bn threshold if it manages to secure more funds in the upcoming round. 

Waycool would become the country’s first agritech unicorn if it crosses the $1 Bn valuation threshold, going ahead of its peers – Flipkart and Walmart-backed Ninjacart and Patna-based Dehaat.

Responding to Inc42’s queries on the development, a Waycool spokesperson told Inc42, “Fundraising in the form of equity and debt is a continual activity. The company continues to raise funds based on its expansion needs from existing as well as new investors, and we are in the process of doing so now as well.” 

Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, Waycool is a full-stack agritech platform that connects farmers looking to sell produce to retailers, traders, processors, among others. It also offers SaaS products for clients across domains such as procurement, processing and warehousing, distribution, among others. 

Speaking at Inc42’s ‘The Makers Summit 2023’ in March this year, Waycool cofounder Dasari said that the company was mulling a 2025 public listing. 

The reports of the fresh fundraise come a year after the agri-commerce player picked up $40 Mn funding in a round led by global alternative investment firm 57 Stars in June last year. Prior to that, in January 2022, it also bagged a massive $117 Series D funding from the likes of marquee names such as LightRock, Lightsmith, LightBox, IFC, among others.

It also invested an undisclosed amount of capital in logistics startup AllFresh in November last year. 

Waycool claims to work with more than 2 Lakh farmers and caters to over 1.65 Lakh clients across multiple sectors. 

Despite scaling up its operations, the startup continues to be saddled with loss. In FY22, its net loss zoomed 142% year-on-year (YoY) to INR 360.5 Cr. However, operating revenue surged 2.4X to INR 926.9 Cr from INR 382.3 Cr in FY21.

Waycool operates within the larger Indian agritech space which aims to solve the age-old problems plaguing the Indian agricultural sector with technology. As a result, the space has seen heavy interest from investors who have pumped millions of dollars in the startups operating in the sector.

As per an Inc42 report, the homegrown agritech ecosystem is projected to grow to a size of $24.1 Bn by 2025. 

The post Agritech Startup Waycool In Talks To Raise $50-70 Mn At A Valuation Of Around $900 Mn appeared first on Inc42 Media.

Bengaluru-based agritech startup Satyukt Analytics has secured Pre-Series A funding of INR10 Cr ($1.2 Mn) from NABARD-backed agritech investor NABVENTURES.

The funds will enable Satyukt to improve its Sat2farm app which empowers farmers with data-driven insights and Sat2credit app which helps BFSI players to evaluate a farm’s creditworthiness and credit risk.

Further, the startup will also use the funds to introduce new products such as Sat4agri for agri-input companies and Sat4risk for agri-insurers.

Founded in 2018 by Sat Kumar Tomer and Yukti Gill, Satyukt is a SaaS startup that deploys satellite technology to offer advisory services to the customers. It uses a proprietary technology that can measure farm soil nutrients content within minutes to help farmers assess soil quality on their mobile devices without having to visit the farm.

Commenting on the investment, Tomer said, “NABVENTURES’ investment strengthens our resolve to leverage cutting-edge technologies to enable our stakeholders from India’s agriculture sector to access and utilise accurate, real-time data that can drive their decision-making processes and positively impact their operations.”

Commenting on the technology adopted by Satyukt, Rajesh Ranjan, CEO of NABVENTURES, said, “Satyukt Analytics is the only startup in India to measure nutrients in soil using satellite data. It is the only satellite data analytics startup, which works directly with farmers through its sat2farm app using a b2c approach while all other players have chosen the b2b2c route.”

In 2020, NABVENTURES along with Social Alpha, invested $500K in the startup. 

The agritech startups have been successful in closing a good number of investment deals over the years. Lately, in May, agritech startup Balwaan bagged $2 Mn to establish pan India network and offer new products to farmers to boost production.

During the same period, another agritech startup Agrizy secured $5 Mn debt funding from SBI, Yes Bank, Vivriti Capital, and some other financial institutions.

Further, Flipkart-backed B2B agritech startup Ninjacart’s net loss narrowed by 70% in FY22 from FY21. 

The post NABARD-Backed NABVENTURES Invests In Agritech Startup Satyukt appeared first on Inc42 Media.

Agritech startup Balwaan has bagged $2 Mn funding in a Pre-Series A round led by Caspian Leap for Agriculture Fund. The round also saw participation from investors including Deepak Agarwal (MD of Bikaji group), Rishab Jain (CFO of Bikaji), Pulkit Bachhawat (Founder, Right Pillar Advisors), and other prominent investors.

For the round, Right Pillar Advisors served as the financial advisor, while Skwerup Capital served as legal advisor.

The startup is going to use the fund to develop new products and establish a pan-India distribution network for its existing products. It primarily looks at expansion across the southern and eastern regions of India. 

Further, the startup is also planning to set up a local language after-sales support centre to provide round-the-clock technical assistance to farmers. This initiative is to enable seamless customer service and improve the overall experience of farmers using its machines.  

Also, the startup will use the funding to offer consumer finance options to farmers, to make it easier for them to purchase machines through EMI plans. 

Balwaan also aims to launch ISI-approved small farm machine products under its Balwaan Krishi brand.

Commenting on the fresh investment, Rohit Bajaj, cofounder and CEO, Balwaan said, “We are at the forefront of innovation, harnessing cutting-edge technologies like artificial intelligence (AI) and machine learning (ML) to revolutionize our product offerings and obtained to give proactive maintenance and unparalleled support to our dedicated farmers.”

Founded in 2016 by Rohit Bajaj and Shubham Bajaj, Balwaan Krishi offers technologies that enable farmers to boost production, improves farmers’ lives. The startup claims that it alters rural communities by providing affordable and effective machinery to manage small and marginal farms.

Balwaan claims to have sold over 60,000 units of equipment. The products are available on ecommerce platforms including Amazon and Flipkart, and the startup fulfills more than 1,000 orders daily. 

According to the startup, the Indian agricultural industry comprises 12 Cr farmers out of which 10 Cr are small scale and marginal farmers. It further claims that with its awareness campaign initiatives, Balwaan has connected with more than 10 Mn farmers.

Even though a significant portion of the Indian landmass is under agriculture, lack of awareness and supply chain management affects crops, hence impacting the farmers.

Recently, agritech startup Agrizy secured $5 Mn debt funding from SBI, Yes Bank, Vivriti Capital, and some other financial institutions, to strengthen its technological & processing capabilities among others.

Last month, Akshay Kumar and Virender Sehwag invested in an agritech startup Two Brothers Organic Farm (TBOF) in a Pre-Series A round.

CropIn, WayCool, etc operate in the agritech startup space in India. 

The post Agritech Startup Balwaan Raises $2 Mn Funding To Help Farmers Boost Production appeared first on Inc42 Media.

Mumbai-based omnichannel farm-to-fork startup KisanKonnect has raised an undisclosed amount of funding from actor Shilpa Shetty Kundra.

Founded in 2020 during the pandemic by Vivek Nirmal and Nidhi Nirmal, KisanKonnect sources food directly from its network of 5,000 farmers through its village-level collection centres and delivers it to consumers in Mumbai and Pune with no middlemen involved in the supply chain. 

“Not only are they (Kisankonnect founders) solving the problem of safe-to-eat food, but they are also connecting thousands of farmers directly to the consumers, resonating with my thoughts about promoting health in my country, where agriculture is one of the major occupations,” said Kundra talking about the reason behind her investment in the startup.

The startup offers its services to customers directly through its mobile app and farm stores, which is quite unlike the other players in this space, such as DeHaat, Ninjacart, and WayCool.

Further, the startup manages around 1.75 Lakh acres of cultivated land, and offers a wide range of more than 200 types of vegetables and 100 types of fruits online. It claims to be delivering approximately 1.5 Lakh boxes of vegetables and fruits every month. 

“We took three years to build our model patiently to build a supply-chain-first company. Working at farm level, reducing waste, building a robust last mile and gaining excellence in customer experience have always been our priorities. We see Kisankonnect is striking a chord with the majority of planned buyers, who value good quality over quick delivery,” said KisanKonnect founder Vivek Nirmal.

The agritech startup also claims to have clocked INR 120 Cr in Annualised Revenue Run Rate (ARR) as of now and servicing more than 1 Lakh consumers in Pune and Mumbai.

KisanKonnect plans to tap a huge potential in the agritech sector, which is expected to grow at a compound annual growth rate (CAGR) of about 50% by 2027 to become a $34 Bn market by that year, as suggested in an Avendus Capital report.

“Our integrated model right from soil testing, plant biologicals based on Regenerative Agriculture are helping thousands of our farmer members to nurture an active and healthy soil. Our unique model ensures better returns for smallholder farmers and fresh and nutritious food for the consumer,” added Nirmal.

Meanwhile, Kundra’s investment in KisanKonnect follows her recent fund infusion of INR 2.25 Cr in the ready-to-cook D2C brand WickedGud. Prior to this, she also invested an undisclosed amount in women-focussed upskilling platform Hunar Online.

Last year, the actor also increased her stake in IPO-bound D2C unicorn Mamaearth.

The post Shilpa Shetty Kundra Backs Agritech Startup KisanKonnect appeared first on Inc42 Media.

Pune-based agritech startup Agrostar’s net loss zoomed 89% to INR 141.7 Cr in the financial year 2021-22 (FY22) from INR 74.8 Cr in the previous year despite a rise in its topline.

Its operating revenue jumped 1.9X to INR 260.4 Cr in FY22 from INR 138.2 Cr in the previous fiscal year. The startup, backed by Evolvence Global, provides advisory solutions and agricultural inputs to farmers online as well as offline.

It generated most of its revenue through sale of agricultural inputs. Agrostar earned INR 232.7 Cr through sale of products in FY22, a 96% jump from INR 118.7 Cr in the previous year. 

Led by the rise in operating revenue, total revenue increased 1.8X to INR 263.3 Cr in FY22 from INR 142.1 Cr in FY21.

On the expenses front, total expenditure shot up 87% to INR 405 Cr from INR 217 Cr in FY21. The startup spent the highest amount on procurement of products. Purchase of stock in trade expenses jumped 88% to INR 260 Cr from INR 112.4 Cr in FY21, accounting for 64% of its total expenditure.

Meanwhile, employee benefit expenses soared to INR 74.5 Cr during the year under review from INR 50.3 Cr in FY21. Employee benefit expenses included salary, PF contribution, gratuity and other employee welfare benefits.

Agrostar also spent INR 28 Cr on advertising and promotional activities, an increase of 180% from INR 10 Cr in FY21. 

The startup’s EBITDA margin improved marginally to -51.2% in FY22 from -51.6% in FY21. Its cash flow from operations stood at (-) INR 138.6 Cr in FY22 as against (-) INR 71.7 Cr in the previous year. 

Agrostar’s cash balance stood at INR 266.07 Cr at the end of FY22 as against INR 43.1 Cr a year ago.

Founded in 2013 by Sitanshu Sheth and Shardul Sheth, AgroStar leverages data and technology to solve farmers’ problems of access to good quality agri-inputs by bridging the knowledge gap. The startup claims it has benefited more than 5 Mn farmers so far.

At the peak of the startup funding boom in 2021, Agrostar raised $70 Mn in its Series D round from Evolvence, global asset manager Schroders Capital, Hero Enterprise, and the UK’s development finance institution CDC Group. Earlier in 2019, the startup raised $27 Mn in Series C round led by Bertelsmann India. 

Last year,  Agrostar acquired Mumbai-based agritech startup INI Farms in a cash and stock deal. Agrostar directly competes against Dehaat. In FY22, Dehaat posted a net loss of INR 1,563.9 Cr while its operating revenue stood at INR 1,273.42 Cr.

The post Agritech Startup Agrostar’s FY22 Loss Surges 89% To INR 142 Cr appeared first on Inc42 Media.

Agritech startup Agrizy has secured $5 Mn debt funding from SBI, Yes Bank, Vivriti Capital, and some other financial institutions. Agrizy will use the fresh funds to strengthen its technological & processing capabilities, expand reach to more agrifood processing SMEs in India, and large agrifood buyers in international markets.

Agrizy stated that the funding is a significant step towards its mission of creating a seamless supply chain for the agricultural food processors and will be helpful in executing its plans to empower the agro-based food processing market of India. It further plans creating a sustainable future for all stakeholders involved in the process.

Founded in 2021 by Vicky Dodani and Saket Chirania, the startup aims to drive growth in the agrifood processing market in India. The Bengaluru-based agrofood processing startup looks forward to using cutting edge technology to serve the Indian agricultural food market worth $400 Bn. According to Agrizy, it aims at creating a sustainable future by integrating agriculture with technology and building a resilient food system. 

The startup tries to fill the gaps in the agricultural supply chain, globally. It connects fragmented suppliers and food processing units for better management of the food supply chain.

To conduct all these, Agrizy offers customised solutions for addressing the needs of the agrofood value chain. The B2B platform of the startup allows the food processing units to procure food products and ensures end-to-end fulfilment services through quality assurance, logistics, and payment offerings.

Agrizy caters to large agrifood processors and brands with custom-processed agrofood products, increasing capacity utilisation and profitability for SME processors. 

Last year, the startup raised $4 Mn in seed funding led by Ankur Capital, with participation from Omnivore and angel investors Rajesh Yabaji (CEO, BlackBuck), Zetwerk’s cofounders Srinath Ramakkrushnan, Amrit Acharya, Rahul Sharma, and Vishal Chaudhary among others.

Sustainability is a growing trend in the food industry as demand increases for agro-based food products that are grown and processed in an eco-friendly manner.  Recently, actor Akshay Kumar and former Indian cricketer Virender Shehwag have invested in Two Brothers Organic Farm based in Pune, along with others.

Yet another sustainable agro-based food startup INI Farms has bagged $1.95 Mn from ESG First Fund to achieve multifold growth, expand through the entire agriculture output business.

Use of tech in the food industry has seen upward trends for better management of the supply chain ensuring less wastage. Inc42 found that there is going to be an increased focus on creating a robust and agile infrastructure to ensure the food safety standards are effectively maintained as we anticipate food production to double by 2050.

According to a study by MarketsAndMarkets, the use of AI in the agriculture market is anticipated to reach $4 Bn by 2028. 

The post Agrizy Bags $5 Mn Funding To Help Agri Food Processors Streamline Supply Chain appeared first on Inc42 Media.

Actor Akshay Kumar and former cricketer Virender Sehwag along with some other unspecified investors have reportedly invested an undisclosed amount in agritech startup Two Brothers Organic Farm (TBOF) in a Pre-Series A round.

The funding will be used to expand the business domestically and globally, enhancing the manufacturing capacity and conducting training facilities for the farmers associated with the startup. 

Commenting on the funding, Sehwag said, “It is heartening to see the positive impact they have brought in the lives of farmers and people’s health across India and beyond.” Meanwhile, Akshay Kumar noted that he is a firm believer in sustainability and thus, the ideals of Two Brothers Organic Farm align with his principles.

Based out of Pune, TBOF was founded by Ajinkya Hange and Satyajit Hange in 2012. The idea of the startup was generated when the two founding brothers returned to their village with the aim to take up farming as a full-time job.

Commenting on the fundraise, Satyajit said, “The pre-Series A will set the base for Series A.” 

The founders aim to make the rural lives of TBOF’s farmer community better and thus, they expect that this fundraise will help them generate employment for the farmers and especially, the women of the village. 

According to the official statement, the Hange brothers have launched several initiatives to create awareness about organic farming among farmers, and trained more than 16,000 farmers in sustainable farming over the past few years.

The startup claims to have allocated shares to each of the members of the farming team and the early founding members of the startup.

The startup claims, “While securing rural livelihoods and employment, we harness the power of community to offer solutions to public health and climate change.” According to the startup’s official blog, TBOF believes in sustainability and its regular customers purchase their products in glass containers that they carry from their homes.

The startup sells the produce at the farmers’ market of Mumbai every weekend, to ensure a shorter value chain of buying directly from farmers, for consumers. 

With the increasingly fast and changing lifestyle, people have started preferring the usage of organic products to maintain a healthy lifestyle, which in turn has been boosting investments in the sector. 

Recently, Delhi based INI Farms that produces organic food products, has raised $1.95 Mn from Aavishkaar Capital’s ESG First Fund. In December last year, another agro-based startup Eggoz raised $8.8 Mn. 

Last year, Startup India reported that even today, 70% of Indian households earn from agriculture, which contributes to almost 17-18% of the country’s GDP.

The post Akshay Kumar, Virender Sehwag, Others Invest In Agritech Startup Two Brothers Organic Farm appeared first on Inc42 Media.