India’s Agrim Secures $17.3 Million to Simplify Access to Seeds and Pesticides for Farmers

In India, agriculture is a critical source of livelihood for more than 42% of the population, contributing 18% to the nation’s GDP, as per official figures. The agri-input sector, encompassing seeds, pesticides, herbicides, and tools required for farming and harvesting, predominantly operates through conventional methods, primarily local physical marketplaces. This area is marked by an underdeveloped supply chain and complex logistics, especially in the distant regions where the majority of farmers reside.

The scenario for agricultural inputs in India notably differs from Western countries like the U.S. and European nations, owing to its segmented market structure, varying demands, and the cyclical nature of farming practices.

Agrim has taken steps to bridge these gaps by creating an efficient just-in-time supply chain that enables agri-input retailers to procure goods directly from manufacturers.

Co-founder Mukul Garg shared in an exclusive dialogue that their platform promptly forwards orders to manufacturers as soon as they are received from retailers.

Garg, who previously launched the travel application Tripigator in 2013 and served at BlackBuck overseeing products and growth, co-founded Agrim with Avi Jain in April 2020. He brings substantial experience, having developed an on-demand trucking market space before.

Agrim caters to both retailers and manufacturers who are new to digital commerce, providing a user-friendly interface, pricing autonomy for retailers, and a tailored order management system that guarantees seamless pickup and delivery schedules. The startup collaborates with several third-party logistics partners to ensure efficient end-point delivery.

Presently, Agrim offers an assortment of seeds, agrochemicals, nutritional supplements, and tools, sprawling across 600 subcategories. These include various subcategories for crop protection like herbicides, fungicides, and pesticides, plus a range of equipment subcategories featuring both hand-held and motor-powered tools.

Agrim leverages a smart pricing model, utilizing algorithms to dynamically adjust prices based on market demand and supply, allowing them to maintain a profit margin ranging between 10% and 70%, as explained by Garg.

Moreover, Agrim extends credit services to retailers, who often struggle to obtain financing via conventional means. Garg noted that currently, about 10% of its retail clientele benefit from this offer, with aspirations to boost this figure to 30% by extending the credit term duration.

The venture, which is now four years old, has successfully secured $17.3 million in its latest funding phase, spearheaded by Asia Impact. Plans are in place to vastly expand its agri-input inventory and venture into new regions within India over the coming three years, Garg revealed to TechCrunch.

In addition to expanding its range, Agrim is exploring the addition of new categories including animal feed and irrigation equipment, and is preparing to venture into private-label agri-inputs to make essential farming inputs more accessible and affordable for farmers.

Garg emphasized that Agrim’s mission is to address the existing demand and supply disparities through providing private labels, aiming for a more democratized platform.

With a strong network of 1,200 manufacturers and 25,000 retailers, Agrim reaches out to 15 million farmers. The company reported earnings exceeding $36 million in the last fiscal year with an annual revenue projection close to $60 million.

The Series B funding round also saw investments from prior backers Accion Venture Lab, India Quotient, Kalaari, and Omnivore, all contributing equity.