Technology-based agricultural supply chain Crofarm has raised $1.5 Million (INR 10 Crore) in seed funding from Mukul Singhal and Rohit Jain, former Principals at SAIF Partners.
Varun Khurana, CEO and co-founder of Crofarm said,
“We have three distribution centres in the Delhi-NCR belt and one in Mumbai where produce from farmers gets delivered which then gets picked up by unorganised market players.”
With Crofarm, farmers are able to earn upto 25% more than when they sell to the Mandis. Khurana hopes to have one lakh farmers and over 10,000 retailers on the platform.
” We hope to reach a stage where we will be able to direct farmers on the kind of produce that they should grow in keeping with rising demand,”
The four-month-old firm procures produce directly from many of nearly 10,000 farmers it has networked access to, and delivers via faster transit to organised and unorganised retailers in Delhi-NCR, Mumbai and Bengaluru and would expand to all major cities across India, networking around one lakh farmers.
Crofarm works on a commission-based revenue model. The commission ranges from 5-7% for less perishable produce like potatoes & onions, 15% for greens & 20-25% for exotic fruits & vegetables. Khurana says produce with a longer shelf life is procured from national sourcing zones while easily perishable ones are bought from regional sourcing zones.