Leads Connect, a prominent agritech startup with a comprehensive approach, has recently secured a substantial investment of INR 500 crore (equivalent to $62.5 million) from the leading FMCG player, BL Agro Industries. This strategic investment is anticipated to unfold over a three-year period, culminating in BL Agro Industries becoming the controlling stakeholder in the startup.
According to reports from CNBC-TV18, the startup plans to allocate the raised capital towards bolstering its technological infrastructure and amplifying its research efforts in deep tech, artificial intelligence, and machine learning domains. Additionally, the funds will be earmarked for pursuing mergers and acquisitions (M&As) and extending its presence within the farming community, cooperatives, and farmer producer organizations (FPOs).
Furthermore, this funding injection will empower the startup to establish AGRANI Centers in multiple cities, initiate awareness campaigns, and collaborate closely with BL Agro to enhance the quality of procurement and streamline the supply chain cycle for the latter.
This deal will harness synergies between the operational capacities of both firms, providing BL Agro with the opportunity to broaden its agritech offerings within the country.
“It’s time for agritech to play a more substantial role in boosting productivity and addressing the challenges faced by farmers. Our partnership with BL Agro will enable us to expand agritech and agri-fintech in the country, delivering greater value to Indian farmers,” said Co-Founder, Chairman and Managing Director of Leads Connect Navneet Ravikar.
Commenting on the development, BL Agro Managing Director Ashish Khandelwal said, “The synergy between BL Agro and Leads Connect will enhance market linkages, offering Indian farmers more value. We hope this partnership will bring farmers closer to consumers through improved supply chain management.”
Established in 2009 by Ravikar, Leads Connect is a comprehensive agritech platform that provides services encompassing data analysis and modeling, farm advisory, farm value chain solutions, and risk management, alongside financial services.
This development occurs amid a challenging phase for the Indian agritech startup sector. Following significant fundraising activities throughout 2021 and the first half of 2022, the growth trajectory of Indian agritech faced setbacks, with prominent agritech brands grappling with escalating losses and workforce reductions.
Nevertheless, the sector remains an appealing prospect for investors, as agritech endeavors to revitalize the struggling agriculture industry through innovative tools and technologies. According to data from Inc42, domestic agritech startups have successfully garnered a total of $2.1 billion in funding from 2014 to May 2023.
In June, the Mumbai-based impact venture fund Omnivore revealed the initial closing of its third fund, specifically directed towards agritech, securing an impressive $150 million. During that same month, Unnati Agri, an agritech platform, successfully raised INR 28.5 crore in its Pre-Series B funding round, with the primary backing coming from IPL Biologicals’ family office.