Two Brothers Organic Farms raises Rs 58.25 crore in funding led by Rainmatter, others

D2C consumer organic grocery brand Two Brothers Organic Farms has raised Rs 58.25 crore in a Series A funding round led by Rainmatter, an investment initiative by India's second-largest stock broking firm, Zerodha.

Rainmatter invested Rs 50 crore, while Raju Chekuri, a notable Silicon Valley entrepreneur and founder of NetEnrich, infused the remaining amount.

Prior to this round, the startup raised Rs 14.5 crore in a pre-Series A funding round in April 2023 from investors, including Bollywood actor Akshay Kumar and cricketer Virender Sehwag.

“We are glad to have like-minded individuals and organisations participate in this fundraising effort, especially our lead investors Nithin Kamath of Zerodha and Raju Chekuri, who understand and support our vision for organic food business in India and abroad," said Siblings Satyajit and Ajinkya Hange, the co-founders.

Purpose of fundraising

The startup will use the raised capital to boost business growth both in India and the United States. The primary goals include exploring demand-side opportunities and expanding supply-side operations to enhance their market presence and promote the adoption of organic food.

"This substantial funding will empower us to assist Indian farmers in embracing organic farming practices. The funding has been a revolution of sorts as we have always wanted patient and conscious capital to support our growth," they added.

What did Nithin Kamath say?

Nithin Kamath, founder and CEO of Zerodha, explained the motivation behind their investment, saying, “At Rainmatter Health, all of us are conscious of our health, and we keep having discussions about food, fitness, nutrition, and health. And we have always questioned stuff like ‘Is the atta we consume safe?’ or ‘Does milk have harmful antibiotics?’ These questions pushed us to find and support Indian startups trying to make Indians healthier. Two Brothers Organic Farms is one such startup. We’ve not only invested in them but also are customers—enabling feedback for them. It's also amazing that the Two Brothers team works with small farmers and improves their livelihood.”

Aiming to reach Rs 500 crore in revenue

The newly raised funds will enable Two Brothers Organic Farms to strengthen its operations, aiming for a profitable growth trajectory. The startup aims to achieve a revenue of Rs 500 crore within the next four years. 

Additionally, It plans to support over 50,000 farmers in embracing sustainable farming practices. 

Two Brothers Organic Farms' market presence

Founded in 2019 by brothers Satyajit and Ajinkya Hange, Two Brothers Organic Farms claims to have witnessed a year-on-year growth rate of about 70% over the past four years. 

The brand caters to around three lakh customers, with a repeat rate of 69%. While primarily operating online, it has a small offline presence contributing 7-10% of sales. Most of its revenue comes from its website (65%) and online marketplaces (15-20%).

The startup works with over 4,800 farmers across 17 states and territories in India, with a significant concentration in Maharashtra, Karnataka, and Gujarat, covering close to 5,000 acres of farmland.