INI Farms, a horticulture startup, has secured $1.95 million from Aavishkaar Capital’s ESG First Fund. The startup plans to use the funds to achieve significant growth, expand their agricultural output business, and utilize their existing supply chain capabilities.
The startup’s objective is to establish a technology-oriented global fruit brand named Kimaye. Through its direct-to-consumer platform FruitRoute and various other e-commerce channels, it serves the agro-market of 35 countries. Additionally, the startup has a presence in eight Indian cities, including Delhi, Mumbai, Bengaluru, and Hyderabad.
Established in 2009 by Pankaj Khandelwal and Purnima Khandelwal, INI Farms aims to achieve 100% disintermediation and reduce food wastage, which often occurs due to supply chain delays, to below 2%.
Agrostar, a B2B farm input startup, acquired INI Farms in a cash and stock transaction in 2022. The acquisition granted INI access to an involved digital farmer network with over five million users and a retail network of more than 2,000 stores.
Commenting on the funding round, Purnima Khandelwal said, “The agriculture story in India is poised for a multi-fold growth. We believe that large platforms providing end-to-end services to the farmers from advisory and inputs to output offtake is going to drive this transformation.”
Aavishkaar Capital is a frequent investor in sustainable businesses. In December of last year, it invested $13 million in dairy tech startup MoooFarm, in conjunction with Aditya Birla Ventures.
Agro-based startups have been making significant strides with an increasing amount of innovation in the sector. Kamlesh Nanasaheb Ghoomre, also known as “Jugaadu Kamlesh,” gained attention when he received INR 10 lakh for 40% equity and INR 20 lakh in debt from Peyush Bansal on Shark Tank India. As a result, numerous startups, including Carrageen, Cocofit, and Tagz Foods, secured funding from the “Sharks” on the show.
Ninjacart, a major player in the agri-tech industry and backed by Flipkart, has witnessed a significant improvement in its financials with a 70% reduction in net loss. The company’s net loss stood at INR 307.9 Cr in the financial year ending on March 31, 2022, down from INR 1,023 Cr in the previous year, FY21.
In December of last year, Indian agro-based startup Eggoz raised $8.8 Mn, while CropIn secured $13.7 Mn in funding from a group of investors, including Google, JSR Corporation, ABC Impact, and Chiratae Ventures.
According to a 2022 report by Startup India, despite the current circumstances, nearly 70% of Indian households generate income from agriculture, which accounts for approximately 17-18% of the country’s total GDP.
India’s agritech sector is witnessing the emergence of various startups such as Farm2Fam, DeHaat, ReshaMandi, and Vegrow, among others.