Aquaconnect, a Chennai-based full-stack aquaculture startup, has raised $4 million (INR 33 crore) in a Pre-Series B funding round led by US-based S2G Ventures.
The recently secured funding will be utilized by the startup to enhance its operations and extend its presence nationwide. Additionally, the capital will be allocated to strengthen its technological infrastructure, broaden the product portfolio, explore new market segments, and double its network of partners within the next six months.
Aquaconnect Founder and chief executive officer (CEO) Rajmanohar Somasundaram, said, “The investment from S2G reinforces our mission of transforming the Indian aquaculture landscape through a phygital approach. The funds come at a critical juncture as we gear up for our next phase of growth to capture new opportunities, with an intense focus on expanding our operations in major markets.”
Commenting on the fundraise, managing director at S2G Ventures Kate Danaher added, “As a leading organisation in the second largest aquaculture market in the world, we believe Aquaconnect is ideally positioned to capture meaningful market share and contribute to a future of sustainable growth across the sector.”
Established in 2017 by Somasundaram, Aquaconnect is a full-stack aquaculture platform employing AI and remote sensing data to predict the demand for farm inputs and the supply of harvested produce.
Capitalizing on this data, the platform operates offline last-mile touchpoints that facilitate connections between aqua farmers and farm input brands. Additionally, it collaborates with Non-Banking Financial Companies (NBFCs) to provide formal credit services to its retail partners and seafood buyers, addressing their working capital requirements.
Aquaconnect asserts its presence in six states with a network of over 500 on-ground partners. The platform also states that it serves over 30 brands and has achieved a fourfold increase in revenues in the last fiscal year.
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This development comes more than a year after the startup last raised $15 million as part of a Series A funding round led by Lok Capital in December 2022. Prior to that, it also secured $8 million in venture debt from Trifecta Capital in early 2022.
The startup has garnered support from notable entities, including Louis Dreyfus Company Ventures, Suneight Investments, AgFunder, Omnivore, Rebright Partners, and various others.
It competes with companies like AquaExchange, Captain Fresh, Eruvaka, and others.
Interestingly, this development occurred mere days after AquaExchange successfully raised $6 million in its Series A funding round, led by the London-based private equity firm Ocean 14.
The aquaculture market in India remains predominantly unorganized, characterized by the presence of local players. However, with the increasing demand for seafood both in domestic and international markets, Indian aquaculture startups are turning to technology to enhance the efficiency of feed procurement and forecast market trends.
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According to a report, the aquaculture industry in India is expected to reach a market size of $29.37 billion by 2028.