Agritech startup FarMart has successfully raised INR 24 Cr ($2.8 Mn) in a debt financing round from Swiss asset manager ResponsAbility Investments. This funding will support FarMart’s mission to create a carbon-efficient food supply chain, leveraging ResponsAbility’s sustainability expertise.
Strategic Use of Funds
FarMart plans to utilize the fresh capital to enhance its supply chain operations, emphasizing sustainability. Alekh Sanghera, co-founder and CEO of FarMart, highlighted the importance of this partnership:
“Sustainability is at the core of our business, and responsAbility champions our goal with its strong orientation and expertise in sustainability. Their investment empowers us to accelerate our efforts towards a carbon-efficient food supply chain, and ultimately achieve our vision of a food-secure world.”
Support from ResponsAbility Investments
Neha Baid, head of sustainable food debt at responsAbility APAC, expressed enthusiasm about the collaboration:
“We are proud to drive reduction in food loss and waste in India through our partnership with FarMart, whose technological solutions are crucial for efficient supply chain and logistics. Through our financing and climate advisory expertise, we are scaling impact with FarMart.”
About FarMart
Founded in 2015 by Alekh Sanghera, Mehtab Singh Hans, and Lokesh Singh, FarMart connects global food brands with farmers, facilitating the procurement of food commodities. Utilizing a network of 3 million farmers, FarMart supports over 2,000 food manufacturers across six countries, supplying more than 90 food commodities. The startup integrates AI for quality checks and prioritizes traceability throughout its value chain. FarMart’s clientele spans Asia, the Middle East, and Africa.
Backing and Previous Funding
FarMart has attracted significant investment from major backers including General Catalyst, Matrix Partners India, Omidyar Network, and Avaana Capital, accumulating over $44 Mn in total funding to date.
Growing Agritech Ecosystem in India
The Indian agritech sector is experiencing rapid growth, driven by increasing demand for innovative agricultural solutions and strong support from both the central and state governments. AI integration and smart agricultural practices are key factors in this expansion.
This burgeoning market has seen substantial investor interest, with several agritech startups securing significant funding recently. For instance, Info Edge increased its stake in Gramophone to 39.5% with an additional INR 15 Cr investment, while Niqo Robotics closed its Series B funding round at $13 Mn. Similarly, Poshn secured $6 Mn in a Pre-Series A round co-led by Prime Venture Partners and Zephyr Peacock India.
Market Outlook
Projections suggest that the Indian agritech market could reach a $25 Bn valuation by 2025. This growing market potential continues to attract investors and foster the emergence of innovative agritech startups, positioning India as a key player in the global agritech landscape.
