Exclusive: FarMart set to raise $30-40 Mn in new round

B2B food supply startup FarMart is in advanced discussions to raise up to $40 million in a fresh funding round from new and existing investors, according to two people aware of the details of the potential deal.

“FarMart has been in talks for this round for a while, and although discussions earlier were for a much larger raise, it is now close to being settled in the $35–40 million,” said one of the people cited above on condition of anonymity as talks are yet to be public.

As per sources, Impact Fund Denmark and Greater Pacific are set to lead the round, while existing investors General Catalyst and Matrix Partners are also expected to participate.

Earlier in April, FarMart raised $10 million in a mix of debt and equity. Entrackr had exclusively reported this development, based on information sourced from the Registrar of Companies.

To be sure, the terms of the deal may change at the last moment. 

Queries sent to FarMart CEO Alekh Sanghera on Monday remained unanswered despite repeated attempts.

The agritech space has lost its charm since the 2021–22 boom, but a flurry of developments, including fresh funding across several firms and major consolidation efforts, appears to have revived some optimism.

For context, overall agritech funding had plunged 78% in 2023 to $178 million. It recovered by nearly 30% in 2024, but the momentum didn’t last, with funding dropping again by 58% in the first half of 2025.

FarMart’s B2B platform digitises the supply chain for agricultural inputs and produce by connecting nearby buyers and sellers, helping reduce logistics costs associated with long-distance transportation. It has built a strong retail presence across central and northern India, though its footprint in the southern states and Jammu & Kashmir remains limited.

FarMart has so far raised more than $60 million, including its $32 million Series B round led by General Catalyst, with participation from existing investors Z47 and Omidyar Network India.

According to startup data intelligence platform TheKredible, the company’s operating revenue grew 30% year-on-year to Rs 1,341 crore in FY24, while it posted a net loss of Rs 68 crore during the same fiscal. General Catalyst, Z47, and ON Mauritius are among its major shareholders.

FarMart directly competes with Gramophone (now merged with Unnati), Agrim (backed by Kalaari), Krishify, and several other players in the agri-supply ecosystem.