Full-stack agritech startup Leads Connect has reportedly raised INR 500 Cr ($62.5 Mn) from FMCG major BL Agro Industries. BL Agro is expected to infuse funds over a span of three years, eventually acquiring a controlling stake in the startup.
As per CNBC-TV18, the startup will deploy the funding to shore up its tech stack and scale research in deeptech and AI/ML (artificial intelligence and machine learning) domains. The capital will also be utilised to undertake mergers and acquisitions (M&As) as well as to expand its reach among farmers, cooperatives and farmer producer organisations (FPOs).
In addition, the funding will also enable the startup to establish AGRANI Centres in various cities, run awareness campaigns, and partner with BL Agro to improve the latter’s quality procurement and supply chain cycle.
The deal will leverage synergies between the operations of the two companies and enable BL Agro to expand its agritech offerings in the country.
“… It’s time for agritech to play a more substantial role in boosting productivity and addressing the challenges faced by farmers. Our partnership with BL Agro will enable us to expand agritech and agri-fintech in the country, delivering greater value to Indian farmers,” said cofounder, chairman and managing director of Leads Connect Navneet Ravikar.
Commenting on the development, BL Agro managing director Ashish Khandelwal said, “… The synergy between BL Agro and Leads Connect will enhance market linkages, offering Indian farmers more value. We hope this partnership will bring farmers closer to consumers through improved supply chain management.”
Founded in 2009 by Ravikar, Leads Connect is a full-stack agritech platform that offers data analysis and modelling, farm advisory, farm value chain solutions as well as risk management and financial services.
This comes at a time when the Indian agritech startup has been going through a tumultuous period. After raising copious amounts of capital in 2021 and mid-2022, the Indian agritech growth story ran into troubles as big-ticket agritech brands got bogged down in mounting losses and layoffs.
Despite this, the space continues to be an attractive proposition for investors as agritech looks to empower the ailing agriculture sector with new tools and technologies. As per Inc42 data, homegrown agritech startups secured $2.1 Bn between 2014 and May 2023.
In June, Mumbai-based impact venture fund Omnivore announced the first close of its third agritech-focussed fund at $150 Mn. In the same month, another agritech platform Unnati Agri bagged INR 28.5 Cr as part of its Pre-Series B funding round led by the family office of IPL Biologicals.
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