To fortify its position in the agricultural sector, full-stack agritech marketplace DeHaat has recently finalized a business transfer agreement (BTA) with Freshtrop Fruits Limited. This strategic partnership entails using Freshtrop Fruits’ export network, grading and packing facilities, precooling centres, and skilled workforce by DeHaan.
Founded over 25 years ago by Ashok Motiani and his family, Freshtrop Fruits has been a key player in exporting Indian grapes, as well as other fruits like pomegranates and mangoes, to supermarket chains in the UK, European Union, and various other countries. The Ahmedabad-based company has operated two packhouse facilities in Maharashtra since its inception.
The collaboration between DeHaat and Freshtrop Fruits is poised to enhance India’s fruit value chain significantly. This alliance aims to deepen engagement with farmers, facilitate advanced technology transfer, and improve infrastructure within the agricultural sector, as outlined in the official press release from the companies.
The operationalization of this partnership is set to commence from the upcoming grape harvesting season. DeHaat’s comprehensive marketplace model encompasses the distribution of high-quality agricultural inputs, advisory services, lending solutions, and market linkages for farmers looking to sell their produce. The company has steadily expanded its footprint, with over 10,000 franchise centres across 11 states, serving 1.5 million farmers in more than 100,000 villages as of March 31, 2023.
According to DeHaat’s annual financial statements filed with the Registrar of Companies (RoC), the company experienced robust growth, with a 54.2% increase in gross revenue from Rs 1,274 crore in FY22 to Rs 1,965 crore in FY23. Notably, gain from the sale of agricultural products constituted 98.5% of the total income.
This strategic acquisition is the latest in a series of moves by DeHaat to strengthen its position in the agricultural technology landscape. Previous investments include FarmGuide, Vezamart, Helicrofter, and YCook. Integrating Freshtrop Fruits’ export business into DeHaat’s ecosystem marks a significant step towards creating India’s more efficient and technologically advanced agricultural value chain.
