Two Brothers Organic Farms Secures Funding of 58.25 Crores

Two Brothers Organic Farms Secures Rs 58.25 Cr in Series A Funding Round from Rainmatter
Preeti Bali / 6:22 am / June 27, 2024

Two Brothers Organic Farms, a company delivering organic groceries directly to consumers (D2C), has secured Rs 58.25 crore in its Series A funding round. Rainmatter, a speculation drive sent off by Zerodha, drove the round with a Rs 50 crore commitment. Raju Chekuri, pioneer behind NetEnrich, likewise took part in the subsidizing.

Fresh Capital to Drive Expansion

The newly acquired funds will be used to bolster Two Brothers Organic Farms’ business growth in both India and the United States. The company also plans to explore new customer markets and expand its network of organic food suppliers. This financing round follows an effective pre-Series A round in April 2023, where the startup got Rs 14.5 crore, including ventures from Bollywood entertainer Akshay Kumar and cricketer Virender Sehwag.

Rainmatter Backs Healthy Food Mission

Nithin Kamath, the founder and CEO of Rainmatter, expressed his company’s strong support for Two Brothers Organic Farms. He highlighted Rainmatter’s focus on health and its commitment to promoting healthy eating habits in India. Kamath stated that questions about the safety and quality of food ingredients motivated Rainmatter to invest in startups like Two Brothers Organic Farms, which prioritizes organic produce. He further emphasized that Rainmatter is not only an investor but also a customer, providing valuable feedback to the company. Additionally, he commended Two Brothers Organic Farms’ dedication to supporting small farmers and improving their livelihoods.

Diverse Organic Product Range and Strong Customer Base

Established in 2019 by Satyajit Hange and Ajinkya Hange, Two Brothers Organic Farms offers a broad selection of organic products, including clarified butter (ghee), herbal-infused ghee, cold-pressed cooking oils, traditional whole grain flours, natural sweeteners, immunity-boosting supplements, single-source spices, and a variety of rice, pulses, legumes, and millets specific to India. The company has garnered a loyal customer base of around 300,000 with a remarkable repeat purchase rate of 69%. Over the past four years, Two Brothers Organic Farms has achieved a consistent growth rate of 70% year-over-year.

Predominantly Online Sales with Growing Offline Presence

Two Brothers Organic Farms primarily operates through online channels, generating 65% of its revenue from its own website. Online commercial centers contribute 15 extra 20% of deals. The organization is likewise laying out a restricted physical presence, presently representing 7-10% of its deals. Its client base is packed in metropolitan regions, with almost half (45-46%) dwelling in significant urban areas like Delhi NCR, Bengaluru, Hyderabad, Chennai, and Mumbai. The leftover clients come from more modest urban areas and towns in India.

Extensive Network of Organic Farmers

Two Brothers Organic Farms partners with over 4,800 farmers across 17 Indian states and territories, with a significant focus on Maharashtra, Karnataka, and Gujarat. These partnerships encompass nearly 5,000 acres of certified organic farmland.

Building a Sustainable Organic Food Ecosystem

The Hange brothers, in a joint statement, expressed their gratitude for the participation of likeminded individuals and organizations in the fundraising round. They emphasized the importance of these partnerships in supporting their vision for a thriving organic food industry in India and beyond. The funding will empower them to create a robust organic ecosystem centered on the principles of clean, sustainable, and ethically sourced food.

Ambitious Goals for the Future

Looking ahead, Two Brothers Organic Farms has set ambitious goals for the future. The organization plans to accomplish an income of Rs 500 crore inside the following four years and extend its organization to help north of 50,000 ranchers.

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