Agritech startups in India are seeing huge growth with great investments done by many firms and investors. The top 6 investments in the agritech startups amount to $70 million. Now, a new agritech startup Ergos has received funding of Rs 23.5 crores from Chiratae. The total funding received by the company in the Series A round Rs 58.5 crores.
About Agritech startup Ergos
Ergos has a quality program to help farmers get the most value out of their farm produce. They let farmers convert their produce into assets. These assets can be traded and get a credit against it from the bank. Presently, the company has over 30,000 farmers working with them and have sold over Rs 125 crores worth of produce.
The company was founded 5 years back and has raised a lot of funds since then. Even last year the company has raised a fund of $90 million backed by US-hedge fund and Tiger Global. But presently it is facing quite some trouble due to the pandemic.
Details on the investment
The company has received a total investment of Rs 23.5 and Rs 15 crores backed by Chiratae Ventures and ABF respectively. Making the complete funding raised by the company in the Series A round was Rs 58.5 crores. Ergos made the allotments at RS 901.11 per share and also converted ABF’s convertible debentures to 221,861 Series A preference shares.
Speaking about the investment, Kishor Jha, Founder and CEO, said, “We are extremely excited to have Chiratae on board. Along with the continued support from Aavishkaar Capital, we also intend to scale our geographic footprint rapidly and remain focussed to service farmers directly at farmgate at over 2000 Grainbank locations over the next few years”.
According to reports, presently the company has a value of Rs 134-136 crores. Chiratae, Avishkar Bharat Fund, Kishore Kumar Jha, Praveen Kumar and Priyanka Kumari hold 17.6%, 26.22%, 12.84%, 7.2% and 1.48% stake respectively in the company.
Thoughts of the investors
TCM Sundaram, Founder and Managing Director, Chiratae Ventures, said, “We are excited to partner with Ergos in its contribution to the government’s mission to help farmers double their income in a quantifiable way.”
He also added, “Ergos is bridging the large gap between the selling price of produce and the realisation of farmers at the farm-gate. By using technology to facilitate credit and market linkages to the grains stored with it. This opportunity is massive, and Ergos is expected to capitalise on its early lead to become a market leader that creates sustainable development to the farmers’ life”.
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