Unnati Agri Secures Rs 28.5 Crore Funding, Forms Strategic Alliance with IPL Biologicals

Unnati Agri, a startup focused on agriculture supply chain and financial services, has successfully raised Rs 28.5 crore in funding.  IPL Biologicals' family office led the funding round. The round also saw the participation of existing investors such as Incofin Investment Management, Nabventure, and Orios Ventures.

The capital raised will be used to further develop sustainable and climate-ready products and expand Unnati Agri's product line. The company plans to achieve this by establishing a joint go-to-market arrangement with IPL Biologicals. IPL biologicals contain different ranges of natural nutrition products, patented microbial products, biocontrol, plant stimulants, and some other range products. In November 2021, Unnati Agri raised $8 million in its Series A round, which was co-led by Incofin Investment Management, Nabventure, and Orios.

Unnati Agri, founded in 2017 by Amit Sinha and Ashok Prasad, former Paytm Mall chief operating officer, is known as a fintech-based agricultural platform. Its services encompass pre and post-harvest support as well as working credit lines. Farmers can utilize the platform to purchase agricultural supplies and directly sell their produce to connected food processors and agribusinesses.

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According to  Ashok Prasad, co-founder of Unnati Agri said, "The company is committed to reducing agricultural risks by leveraging its technology to enhance farm productivity and mitigate the impact of climate change, promoting sustainable farming practices. This will be done by using various ranges of modified bio-products."

The company also said that Unnati Agri aims to expand its reach and network to serve 5 million farmers, building on its existing base of over 1.2 million farmers and a network of more than 75,000 stores.

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In the fiscal year FY23, Unnati Agri experienced a remarkable 150% increase in revenue, reaching Rs 398 crore. Despite this growth, the company effectively managed its expenses, resulting in a modest 29% increase in losses to Rs 12 crore in the previous fiscal year. 

Notable competitors for Unnati Agri include Jumbotail, a B2B marketplace and retail platform, which generated revenue of approximately Rs 380 crore, and AgroStar, backed by HeroMotoCorp, which surpassed Rs 250 crore in revenue in FY22.

-Economic Times

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