FarMart, a SaaS-based food supply platform, has successfully raised ₹24 crore ($2.8 million) in a new funding round led by Swiss asset manager ResponsAbility Investments.
This fresh investment marks the first funding infusion for the Gurugram-based company in over two years.
The newly acquired funds will be directed towards building a carbon-efficient food supply chain, FarMart announced in a press release. Additionally, the company aims to leverage ResponsAbility’s expertise to optimize its solutions.
With this latest round, FarMart’s total funding has now reached nearly $50 million, including a $32 million Series B round in March 2022 from General Catalyst, Matrix Partners India, and Omidyar Network India. According to startup data intelligence platform TheKredible, the company’s valuation stood at approximately $128 million during the last equity round.
Interestingly, FarMart’s chief revealed that the firm had $37 million in the bank as of August last year, raising questions about the modest amount raised despite the strong cash reserves.
FarMart’s B2B platform digitizes agricultural supplies and produce, connecting nearby buyers and sellers to reduce transportation costs. The company has a significant retailer footprint in central and northern Indian states, with a relatively sparse presence in the south and Jammu & Kashmir.
Currently, FarMart collaborates with over 2,000 food manufacturers and brands, 3 million farmers, and 400 factories across six countries. In March 2022, it acquired the fruits and vegetables logistics platform Subjimandi.app to optimize logistics and expand its product portfolio.
FarMart reported an almost five-fold increase in operating revenue to ₹1,033 crore in FY23, up from ₹208 crore in FY22. However, its losses surged nearly three-fold to ₹49 crore in FY23. The company has yet to file its annual report for FY24.
As of the Series B round, General Catalyst held a 17.86% stake in the company, followed by Omidyar Network India and Matrix Partners India with 13.48% and 12.7% stakes, respectively. Founder Alekh Sanghera owned less than a 10% stake. For more detailed information, refer to TheKredible.
