[ad_1]
DeHaat, a startup that provides a wide range of agricultural services to farmers in India, has raised $60 million in a new funding round as it looks to deepen its penetration in the country and reach break-even profit within two years.
The Patna and Gurgaon-headquartered startup’s Series E funding is co-led by Sofina Ventures and Temasek, it said, at a valuation between $700 million and $800 million, according to a person familiar with the matter. Existing backers RTP Global Partners, Process Ventures and Lightrock India also participated in the new round.
Agriculture in India is a $350 billion industry, but farmers face numerous challenges in the country that were largely unaddressed until upstarts like DiHat came on the scene. Farmers struggle to secure agro-inputs, find buyers for their produce and maintain sufficient runways.
Giants like Reliance and Adani Group offer some services to farmers, but their involvement in the agriculture sector remains largely limited. A rapidly growing population and climate change mean that Indian farmers need to rapidly adopt technology to improve and sustain their yields.
DeHaat uses artificial intelligence to source raw materials, consult and credit services and sell crops to 1.5 million farmers across 11 states, 110,000 villages and over 150 zip codes in India.
The startup has penetrated more than 2,000 agribusinesses, including input manufacturers, food and consumer goods giants, banks, insurance companies. It works with over 10,000 micro-entrepreneurs who help startups navigate the maze of last-mile supply chains.
Over the past two years, DeHaat has aggressively expanded into several key states in India, and co-founder and CEO Shashank Kumar told TechCrunch in an interview that the startup will focus on deepening its presence across zip codes where it already operates. Reaching break-even profit in future and 12 months.
The new funding gives DeHaat a runway of up to 40 months, during which Kumar said the startup will be profitable. “We are not adding any new geographies for at least the next three to five months. We will continue to serve more farmers and expand our network of centers in the states where we are working,” he said. Currently DeHaat does not have presence in South Indian states. Kumar said the startup hopes to start expanding to those states after about a year.
Kumar admits that fundraising is not a walk in the park in the current market conditions. Funding flows to local startups have shrunk by more than 80% as investors turn cautious following a sharp shift in global market conditions.
“The lens is different—everyone is looking for assets that have a clear path to profitability,” Kumar said. “Thus, DeHaat had its own advantage – our unit economics are very strong, whatever burn we have is to add geographies. We raised the round to be prepared for all future opportunities,” he said, adding that DeHaat still has about two-thirds of its funding remaining from a previous $115 million funding round.
He said the startup, whose name means village in Hindi, has acquired about half a dozen firms in recent quarters and sees more potential on the horizon and is ready to execute if it finds the right partner.
“With the intention of being a contributor to the Sustainable Development Goals, Sofina supports companies that have a positive impact on their communities and the environment. We are impressed by DeHaat’s vision and efforts to empower farmers and local communities, and with this additional funding we expand into existing networks as well as into new geographies. Hope to create a deeper and broader impact,” said Sofina Principal Yana Kachurina, in a statement.
[ad_2]
Source link