FarMart Secures Funding for Carbon-Efficient Food Supply Chain
FarMart, a B2B food supply platform leveraging cloud-based software (SaaS), has secured fresh funding of Rs 24 crore ($2.8 million) from ResponsAbility Investments, a Swiss asset management firm. This investment marks a significant development for the Gurugram-based company, following a funding hiatus of over two years.
Building a Sustainable Food Ecosystem
The newly acquired funds will be directed towards establishing a more environmentally friendly food supply chain. FarMart intends to utilize ResponsAbility’s expertise in this area to optimize its solutions and minimize its carbon footprint.
This latest investment brings FarMart’s total funding to nearly $50 million. This includes a $32 million Series B round secured in March 2022 from investors like General Catalyst, Matrix Partners India, and Omidyar Network India. As per TheKredible, a startup data platform, FarMart’s valuation during the previous funding round stood at around $128 million.
There seems to be a discrepancy regarding FarMart’s financial health. While the company’s CEO claimed to have $37 million in reserves last August, the amount raised in this recent funding round appears relatively modest.
Streamlining B2B Food Supply with Technology
FarMart’s core offering revolves around digitizing agricultural supplies and produce. Their B2B platform connects nearby buyers and sellers, aiming to reduce transportation costs by streamlining logistics. Their network is currently concentrated in central and northern India, with a less established presence in southern states and Jammu & Kashmir.
The company boasts partnerships with over 2,000 food manufacturers and brands, 3 million farmers, and 400 factories across six countries. In March 2022, FarMart strategically acquired Subjimandi.app, a fruit and vegetable logistics platform. This move aimed to enhance their logistics capabilities and expand their product portfolio.
Revenue Growth and Path Ahead
FarMart’s financial performance reflects significant growth in operating revenue. The company reported a near five-fold increase, reaching Rs 1,033 crore in FY23 compared to Rs 208 crore in FY22. However, TheKredible’s data indicates that losses also increased, nearly tripling to Rs 49 crore in FY23. FarMart’s annual report for FY24 is not yet publicly available.
As of the Series B funding round, General Catalyst held the largest stake in the company at 17.86%. Omidyar Network India and Matrix Partners India followed with ownership percentages of 13.48% and 12.7%, respectively. Notably, the company’s founder, Alekh Sanghera, reportedly held a stake of less than 10% at that time.