Agritech start-up DeHaat receives ₹ 20 Cr In debt funding
DeHaat, which is an Agritech start-up based in Patna and Gurgaon has received ₹20 crore in debt funding from Trifecta capital. The company plans to use this debt venture for mainly launching insurance and credit products for the farmers on their platform. This debt will be received over a period of 12 months.
DeHaat is an online marketplace that aims to connect small farm holders and farmers with supplies and equipment required for their farms. These supplies include seeds, fertilizers and pesticides.The Company also provides services to enhance the productivity of their businesses. It also offers advice to the farmers on various issues as well as market linkages.
Shashank Kumar who is an alumnus of IIT Delhi had founded DeHaat in 2012, along with IIT Kharagpur alumnus Manish Kumar. Shashank Kumar said that this funding will enable them to introduce additional financial services on their platform. This debt venture will also help them come to a step closer in achieving their goal of becoming the one-stop destination that fulfils all the needs of the farmers.
Earlier, DeHaat had received an equity funding of $4 million from Omnivore and AgFunder. There has been a marked interest in investing in agricultural sector in recent years. Large companies are looking for co- investing with the Agri focused funds which have been operating for quite some time now.
Rahul Khanna, the co-founder of Trifecta Capital applauded DeHaat for being one of the most innovative start-ups they have come across. They also added that DeHaat has a strong grasp of unit economics and have stellar propositions for farmers as well as other players.
Around 50,000 farmers across UP and Bihar have been using DeHaat in the last 3 months, adding to the 100,000 existing base. The platform currently has over 520 agricultural products listed on it. They have also partnered with companies like UPL Ltd, DuPont, Bayer AG, PepsiCo and Yara international. There are also more than 100 registered institutional buyers on the platform who directly buy produce from the farmers.
Currently, there are three major services that are provided by DeHaat, Crop advisory, Market Linkage and agricultural input. The micro-entrepreneurs are at the heart of the functioning of DeHaat. Each of these micro-entrepreneurs services 300-600 farmers within the radius of up to 3-5 kms. Farmers can use their helplines, mobile app or even physical centres to place their orders. These placed orders are then forwarded to the micro-entrepreneurs and fulfilled the very same day.
As of March 2019, DeHaat has grossed a revenue of ₹40 crore. It earned over ₹21 crore in the last fiscal year.
India’s agricultural market is currently estimated to be valued at $270 billion and there are many opportunities within it. Almost 58% of the country’s population depends on it for livelihood. However, the market is also highly unorganized which has prompted many companies to make use of technology to reach out to the farmers and help them improve their earnings.
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