**Addressing Discrepancies in India’s Agri-Inputs Market**
Agriculture is a vital sector in India, providing livelihood support to over 42% of the population and contributing 18% to the country’s GDP. However, the agri-input market, which supplies seeds, pesticides, herbicides, and tools to farmers, has traditionally relied on offline marketplaces and faces challenges in terms of supply chain and logistics, especially in remote areas where most farmers are located. Additionally, India’s agri-inputs landscape differs from that of the U.S. and Europe due to its fragmented market structure, diversified demand, and seasonal nature of crops.
To bridge these gaps, Agrim, a startup founded in April 2020 by Mukul Garg and Avi Jain, aims to establish a just-in-time supply chain that facilitates the purchase of agri-inputs from specific manufacturers. The platform streamlines the process by immediately taking an order from a retailer to the manufacturer’s warehouse. Agrim primarily caters to retailers and manufacturers who have not previously utilized an e-commerce platform, offering a user-friendly interface and allowing retailers to set their own pricing. The startup also incorporates a custom order management system that matches each order with a manufacturer and ensures timely pickup and delivery. To handle last-mile delivery, Agrim collaborates with multiple third-party logistics service providers.
Currently, Agrim’s catalog includes four categories: seeds, agrochemicals, nutrition, and tools, with various subcategories under each. The startup employs a pricing intelligence model, utilizing algorithms that consider factors such as demand and supply to set appropriate prices. Agrim takes a margin of 10% to 60-70% after providing a price to the manufacturer.
In addition to its core services, Agrim offers lending to retailers who typically struggle to access credit through traditional channels. Approximately 10% of Agrim’s retail base currently utilizes this credit offering, and the startup aims to expand it to 30% of retailers in the coming years by extending the credit period from 30 to 45 days.
**Expanding Catalog and Market Reach**
Recently, Agrim secured $17.3 million in a funding round led by Asia Impact. The startup plans to utilize this investment to expand its catalog of agri-inputs from over 30,000 items to 150,000 within the next three years. It also intends to extend its operations to southern and western parts of India, including Telangana, Karnataka, Tamil Nadu, and parts of Maharashtra. Agrim’s founder, Mukul Garg, envisions further growth by adding two new categories to the catalog: animal feed, covering cattle, fish, and shrimp feeds, and testing out irrigation equipment.
Additionally, Agrim aims to enter the private-label agri-inputs market within the next six months. This move is intended to offer farmers inputs at retail prices rather than paying a premium, democratizing the platform and addressing the demand and supply mismatches prevalent in the market.
**Impressive Growth and Investor Confidence**
Agrim boasts a base of 1,200 manufacturers and 25,000 retailers serving 15 million farmers. In the last financial year, the startup generated over $36 million in revenue and is currently on an annual revenue run rate of nearly $60 million. This strong performance has attracted investors, with the recent Series B funding round also including participation from existing investors Accion Venture Lab, India Quotient, Kalaari, and Omnivore.
Agrim’s success lies in its ability to address the discrepancies in India’s agri-inputs market by building a just-in-time supply chain, offering a user-friendly platform, and providing lending options to retailers. With its plans for catalog expansion, market reach, and entry into the private-label agri-inputs market, Agrim is poised to further revolutionize the sector, benefiting farmers, retailers, and manufacturers alike.