Agritech Startup FarMart raises Rs 24Cr in funding from ResponsAbility Investments

FarMart, a SaaS-based food supply platform that connects food businesses with farmers and manufacturers, has raised Rs 24 crore in funding from ResponsAbility Investments, a Swiss-based asset manager.

The funding round comes more than two years after it raised $32 million in a Series B funding round in March 2022 from led by General Catalyst, with participation from Matrix Partners India and Omidyar Network India.

The current round brings its all-time raise to nearly $50 million. 

What does FarMart do?

Founded in 2015 by Alekh Sanghera and Mehtab Hans, FarMart is a SaaS-based food supply platform that connects food businesses with farmers and manufacturers. 

The startup helps in sourcing agricultural produce efficiently. It works with about 2,000 food manufacturers and brands, three million farmers, and 400 factories across six countries.

It offers a catalogue of around 90 food commodities, aiming to reduce food loss and waste in the supply chain. Their primary focus is on creating a carbon-efficient food supply chain, which aligns with their sustainability goals.

What is the purpose of fundraising?

According to the startup, The raised funds will be utilized to further the mission of building a carbon-efficient food supply chain. 

"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,” said Alekh Sanghera, CEO of FarMart.

How well FarMart is performing financially?

FarMart reported a significant increase in operating revenue, jumping nearly five-fold to Rs 1,033 crore in FY23 from Rs 208 crore in FY22.

However, the startup's losses also surged nearly three-fold to Rs 49 crore in FY23. Despite these losses, It claims to have $37 million in the bank as of August last year.

FarMart's valuation during the last equity round was approximately $128 million. The firm has a strong presence in central and northern Indian states and aims to expand further.

Investor comments

Neha Baid, head of sustainable food debt for APAC at ResponsAbility Investments, highlighted the importance of this partnership in driving the reduction of food loss and waste in India.

“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. Food systems account for a third of global GHG emissions, with major losses occurring at upstream and midstream levels,” she said.