Gurugram-based agriculture-focused technology startup Smart Farms Agritech has raised an undisclosed amount in an angel round of funding, led by Sunkara Subba Rao, an executive at management consulting firm Renous Consulting, and other investors.
The funding will be used by the startup for scaling up operations and making key hires to head the logistics and operations departments, a company spokesperson told TechCircle.
Smart Farms Agritech will also leverage the funds to develop its technology capabilities.
The company provides end-to-end logistics solutions for farmers and is also developing a mobile-based application to facilitate farming processes and eliminate middlemen, an official statement said.
“With the first round of successful investment, Smart Farms will be able to reshape and solve one of the toughest problems in the agri products distribution network through technology. We are already reaching almost 95% of farmers in the area we are operational in along with providing guaranteed 24-hour delivery. Technological advancements are driving new businesses through our zero investment inventory model and access to many agri services at the village level. But this is just the beginning, our first purpose is to utilise this investment in creating a thriving digital economy in rural India,” said Satish Sehrawat, founder, Smart Farms Agritech.
Smart Farms Agritech was founded in 2019 by Sehrawat, a former director at Gurugram-based textile retail firm Riddhima Apparels. The startup intends to organise the largely informal, unorganised agricultural sector by leveraging its mobile application and technologies such as artificial intelligence (AI) and blockchain to facilitate operations, particularly logistics.
Smart Farms Agritech plans to conclude its Series A round of funding by the end of 2019 to bolster growth and expand operations.
Recent developments in the agritech sector:
Investments in India’s agritech sector increased 300% to $248 million during the first six months of 2019 compared to the same period last year, according to a report by IT industry lobby Nasscom.
In August, Netherlands-based Rabobank and impact investment and enterprise platform Caspian set up an agritech financing fund to offer customised debt solutions. The fund will be focused on data-driven agri-tech companies.
That same month, agritech startup CropIn Technology Solutions partnered the Punjab government to improve the quality of potato seed production in the state. As part of the partnership, the Punjab Agri Export Corporation (PAGREXCO) will use CropIn’s AI solutions to facilitate agricultural and supply-chain operations.