DeHaat, a startup that provides a wide range of agricultural services to farmers in India, has raised $60 million in fresh funding as it aims to expand into the country and reach profitability within two years.
Sofina Ventures and Temasek have led the Patna and Gurgaon-headquartered startup’s Series E funding at a valuation between $700 million and $800 million, said a person familiar with the matter. Existing backers RTP Global Partners, Prosus Ventures and Lightrock India participated in the new round.
Agriculture is a $350 billion industry in India, but farmers face enormous challenges in the country until startups like DeHaat arrive on the scene. Farmers struggle to secure agricultural inputs, find buyers for their produce, and maintain adequate runways.
Big companies like Reliance and Adani Group provide some services to farmers, but their involvement in the agriculture sector is very limited. With a rapidly growing population and climate change, Indian farmers must quickly adopt technology to improve and sustain their yields.
DeHaat uses artificial intelligence to help 1.5 million farmers across 11 states, 110,000 villages and over 150 zip codes in India, get advice and credit, and sell crops.
The startup has over 2,000 agricultural establishments including input producers, food and consumer goods giants, banks, insurance companies on board. It works with more than 10,000 micro-entrepreneurs to help startups navigate last-mile supply chains.
Over the past two years, DeHat has expanded significantly across several major Indian states, and co-founder and CEO Shashanku Kumar told TechCrush in an interview that the startup will focus on strengthening its presence in zip codes. Achieving breakeven profitability in the future and within 12 months.
The new funding will give Dehat the airport up to 40 months, during which Kumar said the startup will be profitable. “At least for the next three to five months, we will not be adding new geographies. We will continue to serve more farmers and expand our network of centers in the regions where we have operations,” Kumar said. it has.
Kumar admits that fundraising is not a walk in the park in the current market environment. Funding for local start-ups has dropped by more than 80% as investors become increasingly wary of global market conditions.
“The lens is different — everyone is looking for assets that have a clear path to profitability,” Kumar said. “In that way, DeHaat had an advantage — our segment economics are very strong, any burn we have is to increase geography. We raised the round to be ready for future opportunities,” said DeHaat, who has about two-thirds of the funds remaining from a previous $115 million funding round.
The startup, whose name means in Hindi, has acquired nearly half a dozen companies in recent quarters and says it sees more m and potential on the horizon and is ready to execute when it finds the right partners.
“With the aim of contributing to the Sustainable Development Goals, Sofina supports organizations that have a positive impact on their communities and their environment. We continue to be impressed by DiHat’s vision and efforts to empower farmers and local communities, and with this additional funding will be deeper and broader in our existing network and in new geographies.” We hope to make an impact, said Sofina headmaster Yana Kachurina, in a statement.