Bengaluru-based agritech startup Ergos raised $10 million in a Series B funding round to digitise grain storage and optimise post-harvest sales.
The round, which is in a combination of equity and debt, was led by Norwegian fund Abler Nordic, with participation from existing investors, including Aavishkar Capital, Chiratae Ventures, and Trifecta Venture Debt Fund.
How the raised funds would benefit Ergos?
Ergos works towards digitising grain storage, converting grains into digital assets, and earning money by selling those procured grains at the optimal time post-harvest. The funds raised will be vital in enhancing Ergos’s initiatives to digitise grain storage and link farmers to markets.
The platform further offers a buyer’s platform linking farmers to markets, warehousing for grains, and accessible financing options for farmers through lending partners.
What does Ergos offer?
Ergos, which Kishor Jha founded, has a comprehensive platform named ‘Grainbank’ which enables farmers to make optimal decisions on the sales/storage of their produce, access credit from Banks, and get access to competitive prices through planned liquidations and access to a wide spectrum of buyers.
"We are overwhelmed by the immense opportunity ahead of us and we intend to further deepen our presence amongst the farming community even whilst we rapidly scale our operations," Kishor Jha said.
Currently, Ergos claims to serve 1.6 lakh farmers and operates a farm gate-based warehouse network at over 200 locations across Bihar, Maharashtra, and Karnataka, providing storage facilities for eight to nine months after the harvest.
Arthur Sletteberg, the Managing Director of Abler Nordic, believes that the agritech startup is solving the problem many farmers in India increasingly face – produce spoiling due to lack of access to quality storage, affecting farmers’ income and general food security.
"Our investment in Ergos aligns well with Abler Nordic’s vision of contributing to a more inclusive, just and environmentally sustainable society, and we are excited to partner with them on their journey to scale and expand their solutions for the benefit of farmers across the different agri-belts in India," Arthur said.
Abler Nordic investing is focused on African and Asian markets
Established in 2008, Abler Nordic is a Norwegian Public-Private Partnership (PPP) investing in sustainable financial institutions in Africa and Asia.
The firm manages five funds with total assets of $370 million. It includes investors such as the Danish and the Norwegian government.