Introduction Of Agrim
Agriculture in India supports over 42% of the population and contributes 18% to the country’s GDP, according to government data. Despite its importance, the agri-input market—comprising seeds, pesticides, herbicides, and farming tools—remains largely reliant on traditional offline marketplaces. The fragmented supply chain and logistical challenges in reaching remote farmers exacerbate the issue.
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Agrim, a tech-driven startup founded in April 2020 by Mukul Garg and Avi Jain, aims to revolutionize this space by building a just-in-time supply chain to streamline the procurement of agricultural inputs for retailers. The startup’s innovative approach addresses the critical inefficiencies that have long plagued the agri-input market in India.
Agrim’s Unique Marketplace Solution
It connects agri-input retailers directly with manufacturers through its digital marketplace. Orders placed by retailers are processed in real-time and routed to the corresponding manufacturing warehouse. This ensures that the supply chain is not only efficient but also responsive to the immediate needs of farmers.
Mukul Garg, who previously co-founded the travel app Tripigator and worked on logistics for BlackBuck, brings valuable experience in building digital platforms to It. His team’s focus on user-friendly interfaces makes the platform accessible to retailers who may be unfamiliar with e-commerce.
In addition to a streamlined ordering system, Agrim offers dynamic pricing through a pricing intelligence model. This system takes into account demand, supply, and other factors to set competitive prices for agri-input products. The startup generates revenue by taking a margin of 10% to 70% on transactions, depending on the product and pricing strategy.
Expanding Access to Credit
One of the most significant barriers for agri-input retailers in India is access to credit. Traditional financial institutions often overlook these retailers due to their small size and perceived risk. Agrim addresses this gap by offering lending services directly through its platform. Currently, around 10% of Agrim’s retail base utilizes this credit offering, with plans to expand this figure to 30% by extending credit periods from 30 to 45 days.
Securing $17.3 Million to Drive Growth
In its latest Series B funding round, Agrim raised $17.3 million, led by Asia Impact, with participation from Accion Venture Lab, India Quotient, Kalaari, and Omnivore. This fresh capital infusion will support Agrim’s ambitious expansion plans, which include increasing its catalog from 30,000 to 150,000 items over the next three years. The company also plans to extend its geographical reach to southern and western India, specifically targeting states like Telangana, Karnataka, Tamil Nadu, and Maharashtra.
Agrim’s growth strategy also involves adding new categories, such as animal feed and irrigation equipment. Additionally, the company is preparing to enter the private-label market within six months, offering agri-inputs at retail prices to farmers.
Looking Ahead
Agrim currently boasts a network of 1,200 manufacturers and 25,000 retailers, serving an estimated 15 million farmers across India. The company reported generating over $36 million in the last financial year and is on track to reach an annual revenue run rate of $60 million.
With its innovative approach, commitment to addressing supply chain inefficiencies, and plans for continued expansion, Agrim is poised to play a significant role in transforming India’s agricultural landscape.
