What is funding? We receive funding news for a startup almost daily. But have we ever stopped and thought, what does this mean? Why do startups go through the funding process? In simple language, financing is the process of injecting money into the business.
Funding is the most critical process a startup goes through because without funds startups and businesses can’t do anything. They need funds for everything, for expansion, for hiring new staff, for introducing new lines of services and products. A startup in its lifetime goes through various funding rounds with the help of investors who constantly keep an eye on startups.
Yes, these days we hear and read a lot of news about startup finance. One of the main and important reasons for this is that the economy suffered a disastrous effect in 2020 when governments imposed lockdowns at central and state levels. We haven’t been able to hear much news about funding or the changes that have taken place in startups because of this.
The economy has become somewhat stagnant, but the year 2021 has changed it. The lockdown has been lifted, the economy has been opened and it is back in action. Now, that’s why we hear daily news about financing, mergers or acquisitions, and everything about startups.
FarMart raised $ 10 million in funding as announced on October 21, 2021. This funding round was Round A and was led by Matrix Partners India. The other participants in this round table were Innoven Capital and existing investors – Omidyar Network India, Avana Capital and 500 Startups.
This round of funding also saw the participation of the founder of Park + – Amit Lakhotia, founder and CEO of Jupiter- Jitendra Gupta, founder of WestBridge Capital and Sequoia Capital India- KP Balaraj, co-founders of Mosiac Wellness- Revant Bhate and Dhyanesh Shah , and the founding fund of OfBusiness.
This round of funding had the exit of its first investors, which were Indian Angel Network and LetsVenture. The startup plans to use the funds raised to expand its distribution network across the country. It will also use the portion of the funds to increase product capabilities and develop and increase the size of the team. This round of funding took place after the round of pre-series A, which took place in June of this year when the startup raised $ 2.4 million.
About the newly funded startup
FarMart is the premier micro-SaaS platform for agriculture in India. The startup’s mobile app enables users, who are agricultural retailers, to better serve their farmers by giving them access to information, market links and inputs. Many large companies are using the startup’s agricultural retailer network to source quality produce directly from farmers at affordable prices. The startup aims to make food distribution capital efficient, transparent and financially rewarding for the agri-food economy across the country.
Now let’s take a look at how the Gurugram-based startup empowers the agri-food community.
Agri-retailers– The advantages that the startup’s platform has brought to agro-traders are-
- 100% increase in income
- Better recovery of input credit
- One stop shop for farmers: from seed to harvest
Farmers– The benefits that the startup’s platform has brought to farmers are-
- 10% higher price achievement
- Better profit margin
- Faster after-sale payment
Food trade– The benefits that the startup’s platform has brought to the food industry are-
- Cheaper price
- 100% faster order fulfillment
- Quality and comfort guaranteed
The startup’s supporters are Matrix Partners India, Omidyar Network India, Avaana, Innoven Capital, 500 Startups and Catalyst Fund. The massive network of startups is illustrated below by the huge numbers-
Over 16,000 retailers
More than 750,000 farmers
Over 300,000 metric tons
Operating in over 15 states nationwide
What has been said about this funding agreement?
FarMart co-founder ALekh Sanghera made a statement saying this round of funding reflects the startup’s vision, which is to build an operating system for the country’s agro-industry community, and this process will begin with agro-traders. , which are at the heart of the company. He added that the startup’s huge growth shows what the startup is following: a product first and a light business. He also thanks his team for leading the business in such an efficient and fantastic way.
Madhav Tandan, Director of Omidyar Network India, said his company is delighted to continue to support the startup in its mission to create an innovative asset, a technology model designed to help the startup with its agribusiness financial support strategies. traders and farmers, helping them to increase their income. He further said the startup has seen impressive growth in its merchant base and revenue in less than a year.
Matrix India Vice President Sudipto Sannigrahi said he and his organization strongly believe in the startup’s business model. He added that the start-up model is so effective that it can disrupt his $ 300 billion agricultural market. He finally said he was excited to be a part of the startup’s journey.
The startup is innovative and is doing something right. We wish the startup good luck and a bright and prosperous future.
Article reviewed and edited by Shreedatri Banerjee