Farm to retail agritech startup Crofarm has raised $500K from a clutch of HNIs including Vinay Mittal, former Chief of Strategy at HT Media, Ramit Sethi from Strongbox Ventures and other HNIs, said two sources aware with the transaction.
Existing investors including FactorE Ventures, Ashish Chand from Yukti Securities and Pravega Ventures also participated in the bridge round. The firm would use proceeds towards ramping up operations, opening up new distribution centres and expansion.
This is the third round of funding for the Gurugram-based company. Last year, it raised Rs 5 crore pre-Series A round led by Factor[e] Ventures and angel investors – Rajan Anandan, Google India MD, and Jitendra Gupta, PayU India MD among others.
“Crofarm is also negotiating a Series A round with multiple investors. It’s likely to get materialised over the next two-three months,” added sources on condition of anonymity.
Crofarm is building a technology-powered supply chain that supports farmers and provides businesses with the fresh produce efficiently and with minimal wastage.
According to sources, the agriculture supply-chain startup processes about 400 tonnes of fruits and vegetables every month with an annualised topline of Rs 15-18 crores in the National Capital Region (NCR).
With this round, Crofarm has amassed a little over $2.5 million total risk capital. In July 2016, Pravega Ventures had led a $1.5 million in the agritech marketplace.
Crofarm supplies fruits and vegetable to over 300 plus retailers including small and medium retailers through its multiple distribution centres. It sources fresh produce from farmers across Haryana, UP, Delhi, Bengaluru, and Maharashtra.
Last month, Bengaluru-based Ninjacart had closed a Rs 250 crore worth Series B round led by Accel Partners and Switzerland-based Syngenta Ventures. Infosys co-founder, Nandan Nilekani, Mistletoe and Qualcomm Ventures also participated in the round.
Over decades, the supply chain in agri space has been inefficient and anti-farmer. However, it’s slated to undergo huge change as tech-driven solutions like Crofarm and Ninjacart are solving the two-way headache for farmers and retailers.
Weeding out supply chain inefficiencies in fresh agricultural produce are large and need of the hour. Apart from Crofarm and Ninjacart, FarMart, RML AgTech, BigHaat, Ravgo, and Jayalaxmi Agrotech are some other players bridging the existing gaps between farmers and retailers.