Anicut Capital Invests Rs 7 Crores in a D2C Agri-Tech Startup ‘Uzhavarbumi’

Anicut Capital, a well-known venture capital firm, has invested Rs. 7 crores in Uzhavarbumi, a direct-to-consumer (D2C) agri-tech startup that allows farmers and customers to transact directly. Uzhavarbumi supplies farm-fresh milk to Chennai's urban neighbourhoods, obtaining milk from rural and marginal farmers at a lower market price and bridging the gap between primary producers (farmers) and consumers. This also provides farmers with a steady income because Uzhavarbumi buys milk from them all year.

The investment from Anicut Angel Fund will enable Uzhavarbumi to improve its technological infrastructure, upgrade plant and machinery equipment, and expand its marketing strategies. In addition, the firm intends to reform its product packaging, expand its employees, and expand its operations to Bengaluru in 2023 and Hyderabad in 2024.

"We are honoured to be a part of Uzhavarbumi's mission to promote direct commerce between farmers and consumers," said IAS Balamurugan, Managing Partner at Anicut Capital. Their innovative approach to supply chain management and emphasis on ecologically friendly packaging is consistent with our goal of encouraging sustainable development. They have enormous potential to alter India's agriculture industry, and we are pleased to assist their expansion plans and expansion into other markets."

Uzhavarbumi sources dairy products from over 2200 farmers and manages 42 hubs throughout Chennai, supplying dairy goods to over 15,000 clients. The startup just released an Android app on Google Play and App Stores, which has had over 25,000 downloads.

Currently, Uzhavarbumi is delivering over 15 lakh home deliveries per year and has been operating continuously for the past 2105+ days without any break catering to the growing demand for farm-fresh milk among urban health-conscious consumers, households with newborns or children, and the elderly. Customers have praised the company's environmentally responsible practice of using glass bottles for delivery, which saves 7 tonnes of plastic per year.

Vetrivel Palani, the founder and CEO of Uzhavarbumi, expressed his excitement, saying, "We are thrilled to have Anicut Capital as our investor and partner in the mission to create a more sustainable and equitable agri-food system." We hope to grow our operations and deliver farm-fresh milk to more clients across India with the help of Anicut."

In conclusion, Anicut Capital's investment will enable Uzhavarbumi to achieve its goals of promoting direct commerce between farmers and consumers while providing quality, farm-fresh milk to urban areas of Chennai and expanding to other cities.

Source-Business News Week

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