Agritech startup Grow Indigo has recently secured $8 million (INR 67 crore) in a strategic funding round, with contributions from key stakeholders including Indigo Ag and Mahyco (Maharashtra Hybrid Seeds Co).
The funding round also witnessed the involvement of several angel investors, bringing the total funds raised by the startup to $23 million so far.
Without specifying what the fresh proceeds will be utilized for, the company has emphasized that the capital will be deployed to drive the future of sustainable agriculture.
“With sustainability at its core, we have now demonstrated adoption of biological inputs and carbon solutions at scale by farmers,” said Grow Indigo’s executive chairman Usha Barwale Zehr.
This comes after more than a year since Grow Indigo raised $6 million in funding from Indigo Ag, Mahyco, and other high-net-worth individuals (HNIs) in December 2022.
Established in 2018 as a joint venture between Indigo Ag and Mahyco, Grow Indigo operates an agri-marketplace connecting retailers and farmer producer organizations (FPOs) with agricultural brands. The platform also offers carbon farming solutions for small-scale farmers and sells various biological products.
The Mumbai-based agritech company asserts that it has served over 1 crore farmers and over 1 lakh retailers and farmer producer organizations (FPOs) to date. Having enrolled over 8 lakh acres of land in its carbon farming program, the company aims to expand this figure to 35 lakh acres in the next two years.
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At present, Grow Indigo asserts its presence in 12 Indian states and maintains a team of 200 employees, including agronomists, data scientists, and researchers.
This comes at a time when Indian agritech startups are experiencing a renewed interest from investors. Despite being the backbone of the country’s economy, Indian agriculture is still plagued by archaic practices and lower yields.
Indian agritech players aim to bridge this gap by leveraging technology to address these challenges. Consequently, the funding raised by these startups has experienced a significant surge in recent years.
In 2023, as many as 10 funds were dedicated to supporting Indian startups, specifically focusing on the agritech sector. Notable participants in this space include CropIn, Waycool, and DeHaat.
However, the funding winter has impacted the agritech sector. According to available data, Indian agritech startups raised more than $208 million in 2023, compared to the $817 million raised in 2022.
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