India’s agriculture sector provides a livelihood for most of its inhabitants, accounting for a significant 18% contribution to the country’s GDP, as per official statistics. The agri-input market, a vital supplier of goods to the agricultural industry – including seeds, pesticides, herbicides, and cultivation/harvesting tools – is predominantly reliant on traditional distribution networks, encompassing local offline marketplaces and other conventional channels. The sector struggles with an inadequate supply chain, compounded by complex logistics in remote areas where most farmers are located?
The agricultural inputs landscape in India stands in stark contrast to its American counterpart. due to its complex market structure, varied consumer preferences, and the inherently fluctuating agricultural cycles in Europe?
By establishing a just-in-time supply chain, Agrim aims to reconcile the disparities and facilitate agri-input retailers’ procurement of supplies directly from a designated producer.
According to co-founder Mukul Garg, {The marketplace} streamlines the process by seamlessly forwarding orders from retailers to its manufacturing warehouses as soon as they are received.
After launching his first startup, Garg co-founded Tripigator, a travel app, in 2013, before teaming up with Avi Jain to establish Agrim in April 2020. As a seasoned executive, he has also led teams in charge of merchandise and development at logistics company BlackBuck, where he spearheaded the creation of its on-demand trucking platform.
Agrim partners with retailers and producers who are new to e-commerce, offering a user-friendly interface that empowers them to set their own prices. The platform’s advanced logistics feature includes a bespoke ordering management system that assigns a dedicated producer to every request, thereby guaranteeing seamless coordination of pick-up and delivery schedules. The startup collaborates with multiple third-party logistics service providers to manage end-to-end supply chain operations.
The startup currently offers its product catalog across four distinct categories: Seeds, Agrochemicals, Vitamins, and Instruments. The classification also comprises a vast array of subcategories, including approximately 600 individual categories, which encompass diverse groups such as herbicides, fungicides, and pesticides designed to ensure crop safety, as well as 70 distinct subcategories within the equipment phase, featuring hand-held tools and motor-powered instruments.
Agrim leverages a pricing intelligence model to determine optimal prices for the products it procures from suppliers. Systems utilise algorithms to determine costs primarily driven by factors such as supply and demand, enabling the provision of dynamic pricing on their platform. The startup takes anywhere from 10% to 60-70% of the margins, according to Garg, after assigning a fixed value to the producer.
AgriMoney, a fintech startup, extends credit facilities to retailers, many of whom struggle to access credit through traditional means. Approximately 10% of the company’s current retail customer base utilises this credit offering, according to Garg in an interview with TechCrunch. The company aims to expand its reach to a third of retailers within the next few years, primarily by lengthening the credit term from 30 days up to 45 days.
The four-year-old company has secured $17.3 million in a fresh funding round, led by Asia Influence. The company intends to leverage its recent funding to significantly expand its catalog of agri-inputs from approximately 30,000 products to 150,000 within the next three years, and strategically enter southern and western regions of India, including Telangana, Karnataka, Tamil Nadu, and select areas of Maharashtra.
The startup aims to expand its portfolio by introducing two novel offerings: a range of animal feeds catering to cattle, fish, and shrimp farming, as well as a trial run of innovative irrigation systems.
Agrim aims to penetrate the private-label agri-input market within the next six months, enabling farmers to access essential products at wholesale prices, thereby avoiding premium charges.
As Garg noted, their platform aims to democratize access and opportunities. “We’re experiencing a significant mismatch between supply and demand, with numerous opportunities emerging.” To address unmet demand or provide adequate supply, we must first identify and label each individual’s unique needs.
Agrim asserts a strong foundation of 1,200 producers and 25,000 retailers, collectively supporting over 15 million farmers. The startup has exceeded expectations, achieving a remarkable $36 million in revenue for its most recent fiscal year, with an impressive growth trajectory pointing towards an estimated $60 million annual rate.
The Sequence B funding round for the all-equity spherical saw participation from existing investors Accion Enterprise Lab, India Quotient, Kalaari, and Omnivore.
