Swiss-based ResponsAbility Investments led Rs 24 Cr raised by food supply platform FarMart
As part of a fresh funding round led by Swiss asset manager ResponsAbility Investments, SaaS-based food supply platform FarMart has raised Rs 24 crore ($2.8) million. For the Gurugram-based company, this is their first investment in over two years.
In a press release, FarMart stated that it will utilize the new funds to create a food supply chain that is carbon-efficient. The startup intends to utilize responsAbility’s expertise in order to optimize its offerings.
This brings FarMart’s total fundraising to almost $50 million. In March 2022, General Catalyst, Matrix Partners India, and Omidyar Network India led a $32 million Series B round. According to the media, the company’s most recent equity round valued it at about $128 million.
It’s interesting to note that the FarMart CEO stated that as of August of last year, the company had $37 million in the bank. Why FarMart raised only a small amount in spite of the aforementioned claim is unclear.
By connecting buyers and sellers who are close to one another, FarMart’s B2B product essentially digitizes agricultural supplies and produce and, according to the company, removes various costs associated with moving goods across the nation. Currently, the company’s retailer footprint is primarily found in the central and northern regions of India, with comparatively smaller presences in Jammu & Kashmir and the south.
According to the company, it collaborates with more than 2,000 food manufacturers and brands, 3 million farmers, and 400 factories across six nations.
To improve its logistics and broaden its product offering, it acquired the fruits and vegetables logistics platform Subjimandi.app in March 2022.
Operating revenue for FarMart increased by nearly five times to Rs 1,033 crore in FY23 from Rs 208 crore in FY22. The company’s losses increased by almost three times to Rs 49 crore in FY23, according to TheKredible. The company has not yet submitted its FY24 annual report.
General Catalyst held a 17.86% stake in the company as of the Series B round, followed by Omidya and Matrix, with 13.48% and 12.7% of the company’s equity, respectively. Less than 10% of the business was owned by Alekh Sanghera, the founder.
