FarMart, a SaaS-based food supply platform, has secured Rs 24 crore ($2.8 million) in a new funding round from Swiss asset manager ResponsAbility Investments. This investment follows a gap of over two years for the Gurugram-based company.
FarMart plans to use the new funds to develop a carbon-efficient food supply chain. The company will also utilize ResponsAbility’s expertise to enhance its solutions.
To date, FarMart has raised 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 platform TheKredible, the company was valued at around $128 million during its last equity round.
Despite claims by FarMart’s chief that the firm had $37 million in the bank as of August last year, the company has raised a relatively modest amount this time.
FarMart’s B2B product digitizes agricultural supplies and produce, connecting nearby buyers and sellers to reduce transportation costs. The company has a strong presence in central and northern India, with less coverage in the south and Jammu & Kashmir.
FarMart works with over 2,000 food manufacturers and brands, 3 million farmers, and 400 factories across six countries.
In March 2022, FarMart acqui-hired the fruits and vegetables logistics platform Subjimandi.app to improve logistics and expand its product portfolio.
The company’s operating revenue increased nearly five-fold to Rs 1,033 crore in FY23 from Rs 208 crore in FY22. However, losses also surged nearly three-fold to Rs 49 crore in FY23. FarMart has not yet filed its annual report for FY24.
As of the Series B round, General Catalyst held a 17.86% stake in the company, followed by Omidyar and Matrix with 13.48% and 12.7% respectively. Founder Alekh Sanghera owned less than 10% of the company.
