Ergos, an agritech platform, has raised $10 million in a Series B round led by Abler Nordic, a financial inclusion fund based in Norway with a focus on the African and Asian markets. Existing investors Aavishkaar Capital, Chiratae Ventures, and Trifecta Venture also contributed money to the company.
In a press release, the company stated that Ergos raised the funds using a combination of equity and debt financing.
Ergos uses a farm-gate-based Grainbank model to give farmers access to better prices for their produce as well as the ability to turn their grains into tradable assets, obtain credit against their stored goods through NBFCs and banks, and store them. Additionally, it uses technology to offer them complete post-harvest supply chain solutions.
According to the company, it currently supports over 1,60,000 farmers on its platform and has a physical network of farm-gate based warehouses branded as Grainbank in over 200 locations across the states of Bihar, Karnataka, and Maharashtra. Farmer income has increased by 30–35% annually with the company’s assistance over the years.
The company did not disclose its valuation from the Series B round, but during the Rs 55 crore Series A funding in February 2021, it was last valued at about Rs 445 crore ($60 million).
Ergos has reportedly raised about Rs 162 crore so far (excluding the Series B round), according to data intelligence platform TheKredible. British International Investment, Chiratae Ventures, Aavishkaar Capital, and other entities are among the current investors in the business.
Financial statements for FY23 have not yet been submitted by the company. From Rs 40.81 crore in FY21 to Rs 134.6 crore in FY22, Ergos’ operating revenue increased by 3.3X. TheKredible reports that the organization’s losses also increased at a comparable rate, from Rs 5.8 crore in FY21 to Rs 23 crore in FY22.
