B2B agri-food startup Farmtheory raises $1.45M in a funding round led by Merak Ventures

B2B agri-food startup Farmtheory has raised $1.45 million in a funding round led by Merak Ventures, a Gurugram-based early-stage venture capital firm.

Prior to this round, Farmtheory had raised $150,000 in March 2020 from American startup accelerator Y Combinator.

The startup plans to use the raised capital to scale its operations, focusing on expanding its supply arm, enhancing its technological infrastructure, and strengthening its supply chain by reaching out to more farmers, ensuring a robust and sustainable source of produce.

What does Farmtheory do?

Founded in 2019 by Arpit Agarwal and Sakshi Agarwal, Farmtheory follows an innovative approach to minimizing food waste right at the source, thereby increasing farm yields and ensuring the delivery of quality ingredients to commercial kitchens. 

A sizeable portion of food supply in India remains unsold at the source due to unrealistic cosmetic standards – fruits and vegetables that outwardly look different but are perfectly edible are often discarded.

The startup addresses this issue head-on by procuring this 'freeform' produce directly from farmers and supplying it to various businesses, including cloud kitchens, catering companies, food processors, and restaurants, who can use it just like conventionally shaped produce.

Co-founder shares Farmtheory's vision 

"Farmtheory embodies a vision where every connection between farmer and consumer signifies more than just a transaction — it represents a commitment to enriching lives and fostering sustainability. Through our platform, we empower farmers to share their harvests with the world, creating meaningful connections that sustain communities and promote environmental responsibility," said Arpit Agarwal, Co-founder of Farmtheory.

Farmtheory growth

Farmtheory claims to have onboarded 3,000 partner farmers and served over 1,500 kitchens. The startup now aims to increase these numbers, thereby amplifying the impact on farmer communities nationwide.

Farmtheory's innovative model addresses the immediate challenges of food waste and farmer income and contributes to the broader goal of combating climate change. Farmtheory sets a precedent for sustainability in the agri-food sector by redirecting edible produce that would otherwise go to waste.

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