Agri-tech startup DeHaat acqui-hires Vezamart after securing equity and debt funding
DeHaat, a Gurugram-based online marketplace for farm products and services, has acquired VezaMart, a platform that builds farm management solutions for farmers.
The VezaMart team will join DeHaat and continue developing solutions for farmers, according to a press statement. The deal value wasn't disclosed.
DeHaat, operated by Green AgRevolution Pvt. Ltd, said the transaction will help it grow its farmers’ network and meet its target of reaching one million farmers by 2021.
The VezaMart platform has listed more than 700 farm input SKUs and 120 institutional buyers, the statement said.
DeHaat's technology-based platform offers end-to-end agricultural services to farmers, including distribution of inputs, customised farm advisory services, access to financial services and market linkages for farmers to sell their produce.
DeHaat claims to bring transparency and efficiency across the agricultural value chain for business-to-farmer partners, including agri-input companies, financial institutions and commodity bulk buyers.
The company was founded in 2012 by Shashank Kumar, Shyam Sundar Singh and Amrendra Singh, who are alumni of IIT-Delhi, IIM-Ahmedabad and NIT-Jamshedpur, respectively. It currently supports over 55,000 farmers across Bihar, Uttar Pradesh and Odisha.
“Our rationale for this acquisition is it gives us access to a new region, to newer farmers network in western UP and a well dedicated and grounded team with 2.5 years of entrepreneurial experience in agri-tech,” said Sundar Singh.
Amrendra Singh said the company is planning to set up five regional warehouses in western UP to cater to over 50,000 farmers in the current financial year and to provide them services from seed to market.
Earlier this month, DeHaat received Rs 20 crore in venture debt from Trifecta Capital.
In March, it had raised $4 million (Rs 27.5 crore) in a pre-Series A funding round from impact investor Omnivore and US-based agri-tech-focused investor AgFunder.
The company had earlier secured angel investment from the founders of Mouthshut.com and IIM Calcutta Innovation Park.
DeHaat expects to hit Rs 45 crore revenue in 2018-19, up from Rs 21 crore in 2017-18, with positive earnings before interest, tax, depreciation and amortization.
VezaMart was started in 2016 by Harendra Chaudhary, Abhinav Raghuvansi and Nilima Vora, alumni of NIRMA Ahmedabad.
The company started with the aim of improving farm productivity by providing customized agri-information. It later pivoted to an agricultural input m-commerce platform for farmers. In 2018-19, while working with more than 10,000 farmers, VezaMart claims to have delivered more than 3,000 input orders to farmers' doorsteps.