DeHaat Expands into Fruit and Vegetable Exports with $9.3M Acquisition of Freshtrop Fruits
DeHaat expands into fruit and vegetable exports with a $9.3 million acquisition of Freshtrop Fruits' export business. This aligns with DeHaat's goal of building a Rs 1,000-crore export business in the next three to four years.
DeHaat, an agricultural technology startup, has acquired the export business of Freshtrop Fruits for Rs 77 crore (approximately $9.3 million). This acquisition marks DeHaat's expansion into the fruit and vegetable export sector, a move that aligns with the company's goal of building a Rs 1,000-crore export business within the next three to four years.
DeHaat's acquisition of Freshtrop Fruits includes the transfer of the company's export vertical employees, along with its top leadership, as well as its network and facilities for grading, packing, and precooling. Freshtrop Fruits is a well-established company in the fruit and vegetable export industry, with a turnover of Rs 250 crore.
DeHaat is also acquiring Freshtrop Fruits' network and facilities for grading, packing, and precooling. Freshtrop Fruits, a business with a turnover of Rs 250 crore, was founded in 1992.
DeHaat is expected to see its export business contribution increase from 10% to 18-20% of its overall revenue. The company is currently valued at over $700 million and is on track to report revenue of Rs 2,600-2,700 crore in FY24.
Shashank Kumar, the founder and CEO of DeHaat, expressed a clear vision of building a Rs 1,000-crore export business for fruits and vegetables from India within the next three to four years. With Freshtrop Fruits being its largest acquisition at about $20 million, DeHaat has acquired a total of six businesses, including Vezamart, YCook, FieldFresh Foods, Farmguide, Helicrofter, and now Freshtrop Fruits.
The company has more than 12,000 franchise offline centers and 100 nodes across 120 districts in northern India, engaging 2.1 million active farmers for seed, fertilizer, and pesticide purchases, as well as providing financing and insurance services.
In the financial year 2022, the numbers stood at Rs 1,287.6 crore for revenue and Rs 1,564.1 crore for net loss. As part of the agreement, Freshtrop Fruits' processing business will maintain its independence, and DeHaat will integrate 45 employees from the export sector into its existing workforce of 1,950 full-time employees.
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