Gurugram-based SaaS food supply platform FarMart has raised Rs 24 crore ($2.8 million) in a new funding round from Swiss asset manager ResponsAbility Investments. This fresh capital comes after the company’s hiatus of more than two years.
FarMart plans to use the new funds to develop a carbon-efficient food supply chain, leveraging ResponsAbility’s expertise to enhance its solutions. This recent investment brings FarMart’s total funding to nearly $50 million, including a $32 million Series B round in March 2022, backed by General Catalyst, Matrix Partners India, and Omidyar Network India. According to startup data platform TheKredible, FarMart was valued at approximately $128 million during its last equity round.
Interestingly, FarMart’s chief claimed that the firm had $37 million in the bank as of August last year, raising questions about the modest size of this recent funding round.
FarMart’s B2B platform digitizes agricultural supplies and produce, connecting nearby buyers and sellers to reduce the costs associated with long-distance transportation. The company has a strong presence in central and northern India and a lighter footprint in southern states and Jammu and Kashmir.
The company works with over 2,000 food manufacturers and brands, 3 million farmers, and 400 factories across six countries. In March 2022, FarMart enhanced its logistics capabilities and expanded its product portfolio by acqui-hiring the fruits and vegetables logistics platform, Subjimandi.app.
As of the Series B round, General Catalyst held a 17.86% stake in FarMart, followed by Omidyar Network India and Matrix Partners India with 13.48% and 12.7% stakes respectively. Founder Alekh Sanghera owned less than a 10% stake in the company.
